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Pension regulator PFRDA has come out with a policy on adoption of cloud services by intermediaries for the services being rendered by them.
This is to ensure that risks are addressed effectively and there is regulatory compliance by the registered intermediaries who have adopted cloud services.
It comes at a time when adoption of cloud services for delivering the IT services is on the rise and is also encouraged by the government through various initiatives.
The policy lays down the regulatory and legal requirements and compliances by the intermediaries, if they adopt the cloud services.
This PFRDA move is intended to ensure that adoption of cloud services by intermediaries neither diminish their ability to fulfil obligations to subscribers nor impede effective supervision of the Authority with the assessment of the attendant risks.
Assets under management (AUM) of National Pension System (NPS) and Atal Pension Yojana (APY) have been growing at robust pace of 25 per cent year-on-year and stood at ₹10.23 lakh crore as of October 28 this year.
The new policy on Cloud services adoption would be in addition to the existing outsourcing guidelines. Also the adoption of cloud services would be considered as part of outsourcing of the activities by registered intermediaries, Pension Fund Regulatory and Development Authority (PFRDA) said in a circular.
PFRDA had earlier issued guidelines on outsourcing of activities for Central Record keeping Agencies and Pension funds. These were basically meant for policy on day-to-day handling of the operations and do not cover the outsourcing activities pertaining to IT and ITeS in detail. Further, the registration guidelines issued by PFRDA for intermediaries like CRAs, PFs etc also provide for adoption of emerging technologies like cloud computing.
PFRDA has also now stipulated that intermediary while adopting cloud services or other IT enabled services should take steps to ensure that the service provider employs the same high standard of care in performing the services as would have been employed by the intermediary if the same activity was not outsourced.
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