Reserve Bank of India issued a notification on July 09, 2021[1] to all Commercial Banks (including Small Finance Banks, Local Area Banks, and Regional Rural Banks), All Primary (Urban) Co-operative Banks/State Co-operative Banks/ District Central Co-operative Banks regarding Mandatory Leave for Employees Posted in Sensitive Positions or Areas of Operation.
The notification directs to refer to the circular dated April 23, 2015[2] and advises that the ‘Mandatory Leave’ policy for the employees posted in sensitive positions or areas of operation should be implemented to the banks. It is decided that The circular as mentioned before, is repealed and to update the instructions for the Mandatory Leave Policy.
In the circular dated April 23, 2015, it was stated that employees posted in areas of operations or sensitive positions that are model validation, risk modeling, treasury, currency chests, etc. are covered under a ‘Mandatory Leave’ policy. The employees during their posting in such areas are required to compulsorily avail of leave for a few days, say 10 working days, in a single spell every year. Such highly sensitive positions are to be identified by the bank, and the employee should be sent away from his desk for a specified number of working days each year without any prior intimation
It is decided that the employees posted in sensitive positions or areas of operation shall be compulsorily sent on leave for a few days and it should be not less than 10 working days in every one year, without telling them hence maintaining an element of surprise, so no prior intimation is to be given to the employees. This is done, as it is decided that it will work as a prudent operational risk management measure and the bank shall put in a ‘mandatory leave’.
Employees who are on mandatory leave will not have access to any virtual or physical resources which are related to their work responsibility and banks will have to ensure that the employees, while on ‘mandatory leave’, do not have access to the same. There will be the exception of corporate/internal email which is usually for general purpose and is available to all employees.
A list of sensitive positions to be covered under ‘mandatory leave’ requirements shall be prepared by the Banks as per a Board-approved policy and the list shall be reviewed periodically. the supervisory process will review the Implementation of this policy.
Compliance with these instructions is to be done within six months from the date of this circular that is dated July 09, 2021[3] and this revised instruction shall apply to all the banks.
[1] RBI/2021-22/70, DoR. ORG.REC.31/21.06.017/2021-22
[2] DBR.No.BP.BC.88/21.04.048/2014-15
[3] RBI/2021-22/70, DoR. ORG.REC.31/21.06.017/2021-22
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