The Reserve Bank of India (RBI) has issued guidelines on IT services outsourcing by regulated entities (REs). The guidelines are designed to ensure that REs manage their IT risks effectively and protect their customers’ data.
The guidelines require REs to:
- Have a clear and comprehensive IT outsourcing policy in place.
- Conduct a due diligence of the IT service provider (SP) before outsourcing any IT services.
- Enter into a written agreement with the SP that clearly defines the roles and responsibilities of both parties.
- Implement appropriate risk management controls to mitigate the risks associated with IT outsourcing.
- Monitor the performance of the SP on a regular basis.
- Report any IT security incidents to the RBI promptly.
MCQs and Answers
Q1. What is the purpose of the RBI guidelines on IT services outsourcing?
(A) To ensure that REs manage their IT risks effectively. (B) To protect customers’ data. (C) Both (A) and (B). (D) None of the above.
Answer: (C)
Q2. What are some of the key requirements of the RBI guidelines on IT services outsourcing?
(A) REs must have a clear and comprehensive IT outsourcing policy in place. (B) REs must conduct a due diligence of the IT service provider before outsourcing any IT services. (C) REs must enter into a written agreement with the SP that clearly defines the roles and responsibilities of both parties. (D) REs must implement appropriate risk management controls to mitigate the risks associated with IT outsourcing. (E) REs must monitor the performance of the SP on a regular basis. (F) REs must report any IT security incidents to the RBI promptly.
Answer: (All of the above)
Q3. What is the most important thing that REs should keep in mind when outsourcing IT services?
(A) To choose a SP that offers the lowest price. (B) To choose a SP that has the most experience in the industry. (C) To choose a SP that is located in the same country as the RE. (D) To carefully evaluate the SP’s security and risk management practices.
Answer: (D)
Conclusion
The RBI guidelines on IT services outsourcing are designed to help REs manage their IT risks effectively and protect their customers’ data. By following the guidelines, REs can reduce the likelihood of IT security incidents and ensure that their customers’ data is safe and secure.