Under the Reserve Bank of India’s amended risk management standards, bankers working in sensitive positions, such as treasury operations and currency chests, will be given a surprise holiday of at least 10 working days in a single spell per year (RBI).
Mandatory Leave Policy
As a prudent operational risk management measure, banks should have a “mandatory leave” policy wherein the employees posted in “sensitive positions or areas of operation shall be compulsorily sent on leave for a few days (not less than 10 working days) in a single spell every year”, the RBI said in a notification on Friday.
This should be done “without giving any prior intimation to these employees, thereby maintaining an element of surprise”, it added.
The RBI gave banks six months to comply with these instructions. The revised norms repeal the circular dated April 23, 2015. Banks have been told to ensure that the employees, while on “mandatory leave”, do not have access to any physical or virtual resources related to their work, with the only exception being internal/corporate email, which is usually available to all employees for general purposes.
Implementation Of The Policy
Banks will also prepare a list of sensitive positions to be covered under “mandatory leave” requirements and the list will be reviewed periodically. The implementation of this policy will be reviewed under the supervisory process.
Sensitive positions or areas of operations covered under the ‘mandatory leave’ policy include treasury, currency chests, risk modelling, and model validation, according to 2015 circular.
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