RBI dy guv flags risks in digital outsourcing for financial companies

Financial companies using digital outsourcing and their “third-party dependencies” have benefits but involve risks, said Reserve Bank of India (RBI) Deputy Governor M Rajeshwar Rao on Monday.

“Poorly managed third-party relationships can expose regulated entities to not only customer dissatisfaction and reputational damage but may also invite regulatory and supervisory actions,” he said while speaking at CareEdge Conversations BFSI — Navigating Growth and Risk.