RBI's new outsourcing guidelines

New Delhi: Banks’ outsourcing business will now have to follow a comprehensive set of rules. The Reserve Bank has notified the guidelines on outsourcing of services by banks.

The RBI says that banks have been extensively outsourcing various activities and are exposed to risks.

While the boards of the banks will be responsible for diligence in selecting a service provider, the RBI will have the powers to inspect the records of a service provider.

The new rules state that the service provider should maintain customer confidentiality even after termination of the contract with a bank.

Besides, the bank or its agents should not use any threats while recovering dues from customers.