The Reserve Bank of India (RBI) has instructed banks to adopt a "Mandatory Leave" policy for employees working in sensitive positions or areas of operation. "It has been decided to update these instructions and repeal the circular dated April 23, 2015 ibid" according to the circular issued on July 9, 2021 regarding "Mandatory Leave for Employees Posted in Sensitive Positions or Areas of Operation."
According to the report of RBI:
As a prudent operational risk management measure, the banks shall put in place 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, without giving any prior intimation to these employees, thereby maintaining an element of surprise.
Banks shall 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 email which is usually available to all employees for general purposes.
Banks shall, as per a Board-approved policy, prepare a list of sensitive positions to be covered under 'mandatory leave' requirements and the list shall be reviewed periodically. Implementation of this policy shall be reviewed under the supervisory process.
The revised instructions shall be applicable to all the banks and they shall comply with these instructions within six months from the date of issue of this circular.
All Commercial Banks (including Small Finance Banks, Local Area Banks, and Regional Rural Banks) and all Primary (Urban) Co-operative Banks/State Co-operative Banks/ District Central Co-operative Banks are responsible to adopt the mandatory leave rule for employees posted in sensitive positions or areas of operation.