Core activities of a bank should not be outsourced, says RBI's AK Choudhary

"While outsourcing it is very important that adequate safeguards are established to seal the situation as well as the financial stability of the banking system," Choudhary added

In order to maintain stability in the banking system, banks’ senior management and board members have to ensure that none of the core banking activities of a bank are outsourced to any third party at any point in time, said Ajay Kumar Choudhary, executive director, Reserve Bank of India (RBI).

Speaking at an Indian Banking Association (IBA) event on Saturday, Choudhary said, “In line with our outsourcing guidelines, the board and senior management must ensure that at no point of time, the core activities of banks are outsourced”.

“While outsourcing it is very important that adequate safeguards are established to