Banks have been
permitted outsourcing of financial services vide circulars dated November 3,
2006 and March 11, 2015 on ‘Guidelines on Managing Risks and Code of Conduct in
Outsourcing of Financial Services by Banks’ issued by Reserve Bank of India
(RBI).
Due diligence in
outsourcing involves an evaluation of all available information about the
service provider, inter alia including but not limited to security and internal
control, audit coverage, reporting and monitoring environment, Business
continuity management. The terms and conditions governing the contract between
the bank and the service provider should be carefully defined in written
agreements and vetted by bank''s legal counsel on their legal effect and
enforceability.
Total ATMs for
Scheduled Commercial Banks as on June 30, 2016 is 201334. The details of White
Label ATMs (WLAs) managed by agencies is as under:-
|
Name of the
Entity
|
Metro Centres
|
Urban Centres
|
Semi-Urban
Centres
|
Rural Centres
|
Total
|
|
Tata
Communications Payment Solutions Ltd
|
1310
|
1226
|
2507
|
3212
|
8255
|
|
Hitachi
Payment Services Pvt. Ltd.
|
159
|
228
|
355
|
298
|
1040
|
|
Muthoot
Finance Ltd
|
28
|
60
|
74
|
22
|
184
|
|
BTI Payments
Pvt. Ltd
|
132
|
142
|
1495
|
2028
|
3797
|
|
Vakrangee
Limited
|
106
|
63
|
45
|
90
|
304
|
|
Riddhi Siddhi
Bullions Limited
|
21
|
96
|
73
|
14
|
204
|
|
AGS Transact
Technologies Ltd
|
62
|
10
|
0
|
1
|
73
|
|
Total(WLAs)
|
1818
|
1825
|
4549
|
5665
|
13857
|
Regular audits
by either the internal auditors or external auditors of the bank is conducted
to assess the adequacy of the risk management practices adopted in overseeing
and managing the outsourcing arrangement. The audit reports are to be acted
upon by the banks.
This was stated by Shri Santosh Kumar
Gangwar, Minister of State in the Ministry of Finance in written reply to a
question in Lok Sabha today.
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DSM/KA