The Reserve Bank of India (RBI), on November 28, 2025, issued the Reserve Bank of India (Urban Co-operative Banks – Managing Risks in Outsourcing) Directions, 2025.
The following has been stated:-
• Provided that, for Urban Co-operative Banks covered under the scope of these Directions as enumerated in paragraph 3, their existing IT outsourcing agreements regardless of whether they are due for renewal on or after the effective date of these Directions shall comply with the provisions of these Directions either at the time of renewal or by April 10, 2026, whichever is earlier. However, the bank’s new IT outsourcing agreements that come into force on or after the effective date of these Directions, shall comply with the provisions of these Directions from the date of agreement itself
• Provided that, for Urban Co-operative Banks covered under the scope of these Directions as enumerated in paragraph 3, their existing IT outsourcing agreements regardless of whether they are due for renewal on or after the effective date of these Directions shall comply with the provisions of these Directions either at the time of renewal or by April 10, 2026, whichever is earlier. However, the bank’s new IT outsourcing agreements that come into force on or after the effective date of these Directions, shall comply with the provisions of these Directions from the date of agreement itself
• Scope: As these Directions cover both outsourcing of financial services and IT services, the scope of application of these Directions is specified in the respective Chapters
[Notification no. RBI/DOR/2025-26/293 DOR.ORG.REC.No.212/21-04-158/2025-26]
