The National Payments Corporation of India (NPCI) on January 01, 2025, issued a notification regarding directions to member banks, and NPCI partners on Managing Third Party Risks.
The following has been stated: -
•NPCI directs its partners (banks, PSPs, ASPs, TSPs) to implement robust third-party risk management practices, including due diligence, defining clear agreements, and monitoring third-party performance.
•They should establish audit mechanisms, ensure regulatory and jurisdictional requirements compliance, and have a clear exit strategy for outsourced services.
•Partners must also safeguard data and ensure secure removal of records.
The detailed notification is given in the document below.
[Notification No. NPCI/2024-25/RMD/006]
