rsh (remote shell) -- undocumented(?) feature(?)

[Aaron Schuman]

I just looked over the source for rshd, and I didn't see it setting
umask anywhere.  It isn't set in rcmd(3) either.  Doing a setuid
system call doesn't source the rc files belonging to the new user,
so umask isn't getting set that way.

The umask shell variable is inherited by child processes.  My guess
is that on your system rshd's parent (inetd) has a umask of 022,
and so does rshd's grandparent (init).