 "RBI asks RRBs to ensure service providers adhere to regulatory needs")
The Reserve Bank of India (RBI) has asked Regional Rural Banks (RRBs) to ensure that the service providers (including another bank) adheres to all regulatory requirements of the country.
“Regional Rural Banks may necessarily enter into agreement with the service provider that the infrastructure and applications are made available for audit / inspection by the regulators of the country,” said RBI.
The central bank also said that RBI and National Bank for Agriculture and Rural Development (NABARD) should have access to all information resources that are consumed by RRBs, though the resources are not physically located in the premises of banks.
Further, RRBs have to adhere to the relevant legal and regulatory requirements relating to geographical location of infrastructure and movement of data out of borders.
According to RBI while consuming services provided by other banks or service providers, it may be ensured that all aspects relating to privacy, confidentiality, security and business continuity are fully met.
“Regional Rural Banks may necessarily enter into agreement with the service provider that the infrastructure and applications are made available for audit / inspection by the regulators of the country,” said RBI.
The central bank also said that RBI and National Bank for Agriculture and Rural Development (NABARD) should have access to all information resources that are consumed by RRBs, though the resources are not physically located in the premises of banks.
Also Read
According to RBI while consuming services provided by other banks or service providers, it may be ensured that all aspects relating to privacy, confidentiality, security and business continuity are fully met.