RBI/2013-14/327
UBD CO BPD No.31/09.18.300/2013-14

October 17, 2013

The Chief Executive Officer
All Primary (Urban) Co-operative Banks

Dear Sir / Madam,

Sharing of Information Technology Resources by banks – guidelines

As announced in the Monetary Policy Statement 2013-14 (paragraph 101), with the increased use of information technology (IT) infrastructure by banks, there is a need to examine the issue of shared IT resources in order to optimise costs while maintaining the desired levels of efficiency and security. The feasibility of such shared resources by the banking sector needs to be explored wherever possible, taking into account security issues, data integrity and confidentiality.

2. In this connection, we enclose a copy of circular on the captioned subject issued to all Scheduled Commercial Banks by the Department of Information Technology, Central Office, Reserve Bank of India, vide circular DIT CO (Policy) No.674/ 09.63.025/2013-14 dated August 30, 2013 for your information and necessary action. As the guidelines on sharing of IT resources by banks have been prepared taking into account issues relating to security, data integrity and confidentiality, Urban Co-operative Banks (UCBs) are advised to take the same into account when they opt for sharing of IT resources and ensure that all aspects relating to privacy, confidentiality, security and business continuity are fully met.

3. While entering into agreement with service provider in this regard, UCBs may ensure that the infrastructure and applications are made available for audit / inspection by RBI and that RBI should have access to all information resources that are used by banks, even if the resources are not physically located in the premises of banks.

Yours faithfully,

(A.K. Bera)
Principal Chief General Manager

Encl: As above.