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1. INTRODUCTION:
1.1 The Winners Royal Varsha Credit Cooperative Society Limited (hereafter referred to as “the Society”) recognizes that outsourcing arrangements are an essential part of its business strategy, enabling it to achieve business objectives such as expanding its
operations and offering new products and services.
1.2 Outsourcing also helps to achieve efficiency, reduce costs and allows the Society to leverage specialized expertise of third parties.
1.3 However, the Society recognizes the risks inherent in outsourcing and is committed to managing these risks in a manner that ensures the safety and soundness of its operations, and the protection of its members and their interests.
2. SCOPE:
2.1.This Outsourcing Policy applies to all outsourcing arrangements entered into by the Society, including but not limited to, Business Correspondents (BCs), contractors, agents, service providers, and other third-party providers.
2.2.The policy covers all phases of outsourcing arrangements including selection, contracting, monitoring, and termination.
3. OUTSOURCING RISK MANAGEMENT:
The Society recognizes the risks associated with outsourcing and has implemented a comprehensive outsourcing risk management framework. The framework includes the following:
3.1.Outsourcing Risk Assessment:
The Society conducts a risk assessment of all potential outsourcing arrangements to determine the level of risk associated with the proposed outsourcing arrangement.
3.2.Due Diligence:
The Society conducts due diligence on all potential outsourcing partners to evaluate their ability to meet the Society’s requirements.
3.3.Contractual Arrangements:
The Society enters into contractual arrangements with all outsourcing partners that set out the terms and conditions of the outsourcing arrangement, including the scope of services, responsibilities, liabilities, service levels, and termination rights.
3.4.Ongoing Monitoring:
The Society monitors all outsourcing arrangements on an ongoing basis to ensure compliance with contractual terms, regulatory requirements, and industry best practices.
3.5.Exit Strategy:
The Society has an exit strategy in place to manage the termination of an outsourcing arrangement.
4. BUSINESS CORRESPONDENTS:
The Society may appoint BCs to provide support and customer facilitation centers for financial services to its members in accordance with regulatory guidelines. The Society shall ensure that:
4.1.The BCs are adequately trained and qualified to provide the services offered by the Society.
4.2.The BCs maintain adequate records of transactions and activities undertaken on behalf of the Society.
4.3.The Society conducts periodic monitoring and review of the performance of BCs.
4.4.The BCs comply with all regulatory requirements.
5. INFORMATION SECURITY:
The Society recognizes the importance of information security and shall ensure that all outsourcing arrangements include appropriate information security controls to safeguard confidential information.
6. CONFIDENTIALITY AND DATA PROTECTION:
The Society recognizes the importance of maintaining confidentiality and protecting the privacy of its members’ information. The Society shall ensure that all outsourcing arrangements include appropriate measures to safeguard confidential information and comply with all applicable data protection laws and regulations.
7. REPORTING AND AUDIT:
The Society shall maintain appropriate records of all outsourcing arrangements and shall submit regular reports to the Board of Directors on the performance of outsourcing partners. The Society shall also conduct periodic audits of outsourcing partners to ensure compliance with contractual terms, regulatory requirements, and industry best practices.
8. REVIEW:
This Outsourcing Policy shall be reviewed periodically to ensure its effectiveness and to incorporate any changes in regulatory requirements or industry best practices.
