Question

    What risk management framework must a Payment Service

    Provider implement when engaging with Third-party Service Providers (TSPs) under the IFSCA (Payment Services) Regulations, 2024?
    A Ensure regular audits of all third-party services Correct Answer Incorrect Answer
    B Implement a risk-based framework to assess criticality of services Correct Answer Incorrect Answer
    C Maintain separate financial accounts for third-party services Correct Answer Incorrect Answer
    D Limit third-party contracts to only domestic service providers Correct Answer Incorrect Answer
    E Prohibit third-party service arrangements for critical operations Correct Answer Incorrect Answer

    Solution

    Payment Service Providers must establish a  risk-based framework  to assess the  criticality of services  received from Third-party Service Providers (TSPs) as part of their risk management responsibilities.

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