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RBI/2021-22/76 CO.DPSS.POLC.No.S-384/02.32.001/2021-2022 August 3, 2021 The Chairman / Managing Director / Chief Executive Officer All Non-Bank Payment System Operators Madam / Dear Sir, Framework for Outsourcing of Payment and Settlement-related Activities by Payment System Operators
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FAQ :
The framework has been issued to enable Payment System Operators (PSOs) to effectively manage the risks associated with outsourcing their payment and settlement-related activities.
This framework is applicable to non-bank Payment System Operators (PSOs) concerning their payment and/or settlement-related activities.
PSOs must ensure that all their outsourcing arrangements, including existing ones, are in compliance with this framework by March 31, 2022.
Yes, PSOs shall not outsource core management functions, including risk management, internal audit, and decision-making functions like determining compliance with KYC norms.
No, outsourcing any activity does not reduce a PSO's obligations or those of its board and senior management. The PSO remains ultimately responsible for the outsourced activity and liable for the actions of its service providers.
Outsourcing is defined as the use of a third party (service provider) to perform activities on a continuing basis that would normally be undertaken by the PSO itself, now or in the future. This includes agreements for a limited period.
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Notification No : RBI/2021-22/76 CO.DPSS.POLC.No.S-384/02.32.001/2021-2022Published in Community & General
Source : https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12136&Mode=0