On August 3, 2021, the Reserve Bank of India (RBI) issued the framework to the Non-bank Payment System Operators’ (PSOs) Outsourcing of Payment and
Settlement-related Activities (including Onboarding customers, IT-based services, Etc) to service providers.
•RBI has restricted the PSO’s from Outsourcing Core management Functions such as risk management, Information technology & information Security management, internal audit, And determining compliance with KYC (Know Your Customer) norms.
•The PSO’s are directed to evaluate the Need for outsourcing its critical Processes and activities, and the
Selection of service providers based On comprehensive risk assessment.
What is Outsourcing?
It is the use of a third party (i.e. service Provider/ outsourced agency) by PSO for a limited period to perform the activities That have to be undertaken by PSo (now/Future).
About Reserve Bank of India (RBI):
Establishment 1st April 1935
Headquarters Mumbai, Maharashtra
Governor – Shaktikanta Das
Deputy Governors Mahesh Kumar Jain,
Michael Debabrata Patra, and M
Rajeshwar Rao, T. Rabi Sankar