RBI is going to issue a draft Master Direction on Managing Risks and Code of Conduct in Outsourcing of Financial Services for public comments. 

There has been an increasing trend of outsourcing of financial services by regulated entities. 

The RBI is going to issue a draft Master Direction on Managing Risks and Code of Conduct in Outsourcing of Financial Services for public comments. 

This is being done to strengthen the risk management framework and harmonize and consolidate the existing guidelines.

There has been an increasing trend of outsourcing of financial services by regulated entities. 

Standalone Primary Dealers (SPDs) will now be able to offer all foreign exchange market-making facilities as currently permitted to Category-I Authorized Dealers, subject to prudential guidelines, stated RBI.

This will provide customers with a wider set of market makers to manage their foreign currency risk.