Money & Banking

Employees in sensitive positions should go on ‘mandatory’ leave: RBI tells banks

Our Bureau Mumbai | Updated on July 09, 2021

‘No prior intimation’ in the instructions aimed at maintaining an element of surprise

The Reserve Bank of India (RBI) has asked banks to compulsorily send employees posted in sensitive positions or areas of operation on ‘mandatory leave’ for a few days (not less than 10 working days) in a single spell every year without giving any prior intimation to them.

The ‘no prior intimation’ in the updated instructions on ‘mandatory leave’ is aimed at maintaining an element of surprise and is part of prudent operational risk management measure.

This directive has been prescribed as part of ‘mandatory leave’ policy for bank employees posted in sensitive positions or areas of operation such as treasury, currency chests, risk modelling, and model validation.

Element of surprise

The earlier circular (April 23, 2015) on ‘Mandatory Leave for Employees Posted in Sensitive Positions or Areas of Operation’ did not have the ‘element of surprise’ part in it. That means employees could decide when they want to go on the annual mandatory leave.

The central bank said banks have to ensure that the employees, while on ‘mandatory leave’, do not have access to any physical or virtual resources related to their work responsibilities, with the exception of internal/ corporate e-mail, which is usually available to all employees for general purposes.

The RBI said banks should, as per a board-approved policy, prepare a list of sensitive positions to be covered under ‘mandatory leave’ requirements, and the list has to be reviewed periodically. Implementation of this policy should be reviewed under the supervisory process.

The central bank said its revised instructions on mandatory leave for employees will be applicable to all banks. They have comply with these instructions within six months.

Published on July 09, 2021

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