New Articles

SBI to set up operations support subsidiary

Our Bureau | | Updated on: Jan 13, 2022
image caption

The bank has initiated the process of hiring a consultant

State Bank of India (SBI) is planning to set up an operations support subsidiary (OSS).

This subsidiary is expected to provide support services mainly for agriculture, micro, small and medium enterprises, other micro loans, data entry operations, activities that can be undertaken as allowed for Business Correspondents, among others.

India’s largest bank has received an in-principle approval from the Reserve Bank of India (RBI) for setting up the subsidiary.

The support services provided by OSS to the bank will be subject to RBI norms laid down vide ‘Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by banks’ and ‘Master Direction on Financial Services provided by Banks’.

Hiring consultant

The bank has initiated the process of hiring a consultant who will study similar subsidiaries set up by other Indian banks and suggest adoption of best practices suitable to the bank in alignment with extant RBI guidelines/regulations

Besides suggesting integration strategy of OSS with the Bank and the process to be followed for achieving optimum results, the consultant will also recommend the future scope of expansion of activities for the OSS.

The consultant will also enumerate the permissible activities of the subsidiary consistent with the extant legal and regulatory framework.

Published on January 13, 2022

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

COMMENTS
  1. Comments will be moderated by The Hindu editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.

You May Also Like

Recommended for you