Mandatory Leave Policy: A Much Needed Policy In The Banking Industry Worldwide!

Several Founders, Co-Founders, CXO Bankers, CXO Fintech professionals & people who participated in the ePanel discussions:

  • Mr. Jayaram M, Consultant (Partner), Basil Capital
  • Mr. Rajesh S. Kher, Head- Digital Marketing, DigiMark Global
  • Mr. Alok Karkera, Group Head – Government Coverage Group-West & South at Axis Bank
  • Mr. Subbiaa Olimuthu, former Product Manager RuPay Product, NPCI
  • Mr. Kaunain Esmile, Vice President- Country Lead Customer experience, DBS Bank
  • Mr. Vikas R Panditrao, Co-Founder, Forum of Industry and Academic Knowledge Sharing (FIAKS)
  • Many other CEO/CXO Bankers & Fintech professionals on FIAKS Forum requested to remain anonymous

RBI comes out with a “Mandatory leave policy for employees in critical position or sensitive position or areas of operation in banks.” [1] It is to be noted that this was already implemented by RBI earlier and now RBI brings about certain revisions in the instructions thereby repealing the last circular that was issued in 2015.[2]

Here’s a brief extract of what the revised mandatory leave policy mentions:

  • The banks shall compulsorily send the employees posted in sensitive positions or areas of operation on a leave which shall not be less than 10 working days. The leaves shall be in a single spell every year. Also, employees shall not be informed prior to these leaves, an element of surprise to be maintained. This mandatory leave policy is a part of a prudent operational risk management measure.
  • The employees shall not have any access to any physical or virtual work resources. However, employees will have access to general-purpose internal/corporate email which is usually available to all employees.
  • A list of sensitive positions covered under mandatory leave requirements shall be prepared by banks as per a board-approved policy that shall be reviewed periodically. Well, according to the 2015 circular sensitive areas of operation included currency chests, risk modelling, model validation, treasury, etc
  • All banks need to comply with these revised instructions within six months from the date of issue of the circular which is July 09, 2021.

Will this policy be really effective?

  • Thereon a member opines, nothing happens, all major private banks have this implemented but nothing changes. On the contrary, a member does not opine on the same line, in his opinion, MNC banks are better in the process compared to private banks. Also what happens if a person leaves or dies? MNC banks are better prepared for this as well!
  • The majority of Indian banks don’t follow the ‘no mail’ or ‘contact process’, you can be on leave and still do work, even RBI is saying let them have mail access if mail is available it’s like you got everything.

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2021-11-28T17:37:18+05:30November 28th, 2021|Categories: FIAKS bespoke|Tags: |Comments Off on Mandatory Leave Policy: A Much Needed Policy In The Banking Industry Worldwide!

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