Draft guidelines on managing risks and code of conduct in outsourcing of financial services by NBFCs
The Point of View (‘POV’) document gives the background and the objective for the introduction of these draft guidelines along with the implications it would have on the NBFCs.
The Reserve Bank of India (’RBI’), on April 10, 2015, released the draft Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by NBFCs for seeking comments/ views from interested parties and general public. Non-Banking Financial Companies (‘NBFCs’) extensively outsource some of their operations and these draft guideline were issued to address the risks which emanate as a result of such outsourcing.
The RBI will accept suggestions/ comments on these draft guidelines up to May 8, 2015. The RBI will then issue the final guidelines after taking into consideration the feedback, comments and suggestions on the draft guidelines.