What changed
RBI updated its 2015 mandatory leave policy, repealing the earlier circular. The key change is a clear minimum of 10 working days in a single spell, with no prior intimation to the employee. Banks must now ensure no access to physical or virtual work resources during leave, except general corporate email.
What it means for you
Banks must strengthen operational risk management by forcing a surprise break for staff in fraud-prone roles. This helps detect irregularities or unauthorized activities that might surface when the employee is away. Lenders need to update their board-approved sensitive position lists and review them periodically, as non-compliance will be scrutinized during supervisory reviews.
What you must do
- Identify and list all sensitive positions or areas of operation as per a board-approved policy.
- Implement a mandatory leave policy requiring at least 10 consecutive working days annually for these employees, with no prior notice.
- Ensure employees on mandatory leave cannot access any work-related physical or virtual resources, except internal/corporate email.
- Review the list of sensitive positions periodically and document compliance for supervisory review.
- Complete implementation within six months from July 9, 2021 (i.e., by January 9, 2022).
Who it affects
All commercial banks including Small Finance Banks, Local Area Banks, and Regional Rural Banks, All Primary (Urban) Co-operative Banks, State Co-operative Banks, and District Central Co-operative Banks, Employees in sensitive positions or areas of operation, Bank HR and compliance teams
What is the minimum leave duration required under this circular?
The mandatory leave must be for at least 10 working days in a single spell every year.
Can employees access their work email during mandatory leave?
Yes, internal or corporate email that is generally available to all employees for general purposes is allowed, but no other work-related physical or virtual resources.
What is the deadline for banks to comply with these instructions?
Banks must comply within six months from the date of the circular, i.e., by January 9, 2022.