The Reserve Bank of India (RBI) has urged banks to ensure high standards of care and accountability when outsourcing financial services.

In a circular issued to the banking sector, the RBI urged that banks “take steps to ensure that the service provider employs the same high standard of care in performing the services as would be employed by the banks, if the activities were conducted within the banks and not outsourced“.

The RBI went on to ask that banks put into place a “robust system of internal audit” to manage all outsourced activities, to be continually monitored by the adjusted cost base (ACB) of the bank.

For weekly news updates, subscribe to our email newsletter.

Read this next: Nashik to Outsource Sanitary Work