**Summary:**
This Reserve Bank of India (RBI) circular, DoR.ORG.REC.3121.06.017/2021-22, issued on July 9, 2021, mandates a compulsory leave policy for employees of all Commercial Banks (including Small Finance Banks, Local Area Banks, and Regional Rural Banks), all Primary Urban Cooperative Banks, State Cooperative Banks, and District Central Cooperative Banks who are in sensitive positions or areas of operation. This policy updates and repeals the previous circular DBR.No.BP.BC.88/21.04.048/2014-15 dated April 23, 2015.
As part of operational risk management, banks must ensure employees in sensitive roles take a mandatory leave of at least 10 working days consecutively each year, without prior notice. During this leave, employees must not have access to any work-related physical or virtual resources, except for internal corporate email. Banks are required to establish a Board-approved policy that defines the sensitive positions subject to this mandatory leave, with periodic reviews of the list. The implementation of this policy will be supervised by the RBI. All banks must comply with these revised instructions within six months of the circular's issuance.
The Department of Regulation, Central Office of the RBI, located on the 12th/13th Floor, Central Office Building, Shahid Bhagat Singh Marg, Mumbai – 400001, can be contacted at Tel No: 22661602, 22601000 and Fax No: 022-2270 5670, 2260 5671, 2270 5691, 2260 5692. Sunil T S Nair, Chief General Manager, signed the circular.
Key Entities Referenced
Reserve Bank of India: The central bank of India, the issuer of this circular.
Commercial Banks: A category of banks to which this circular is applicable.
Small Finance Banks: A category of banks to which this circular is applicable.
Local Area Banks: A category of banks to which this circular is applicable.
Regional Rural Banks: A category of banks to which this circular is applicable.
Primary Urban Cooperative Banks: A category of banks to which this circular is applicable.
State Cooperative Banks: A category of banks to which this circular is applicable.
District Central Cooperative Banks: A category of banks to which this circular is applicable.
DBR.No.BP.BC.8821.04.048/2014-15: Reference to the earlier circular regarding Mandatory Leave Policy being updated and repealed.
Mumbai, Maharashtra: Location of the Central Office of Department of Regulation, Reserve Bank of India.
Sunil T S Nair: Chief General Manager, signatory of the circular.
Mandatory Leave Policy: The policy being updated and re-issued, requiring employees in sensitive positions to take mandatory leave.
भारतीय �रजव र् ब�क
___________________RES ERVE BANK O F I NDIA_________________
www.rbi.org.in
RBI/2021-22/70
DoR.ORG.REC.31/21.06.017/2021-22 July 9, 2021
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
Dear Sir,
Mandatory Leave for Employees Posted in
Sensitive Positions or Areas of Operation
Please refer to our circular DBR.No.BP.BC.88/21.04.048/2014-15 dated April 23,
2015, advising banks to implement a ‘Mandatory Leave’ policy for the employees
posted in sensitive positions or areas of operation. It has been decided to update
these instructions and repeal the circular dated April 23, 2015 ibid.
2. 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.
3. 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.
4. 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.
िविनयमनिवभाग क��ीयकायार्लय व�और व�मंिज़लक��ीयकायार्लयभवन शहीदभगत�संहमागर् मुंबई
टेलीफोन फैक्स
, , 12 13 , , , -400001
/Tel No: 22T661602, 22601000 /Fax No: 022-2270 5670, 2260 5671, 5691 2270, 2260 5692
Department of Regulation, Central Office, 12th & 13th Floor, Cen tral Office Building, Shahid Bhagat Singh Marg, Mumbai - 400001
el No: 22661602, 22601000 Fax No: 022-2270 5670, 2260 5671, 5691, 5692
�हंदी आसान हैइसका �योगबढ़ाइए5. 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.
Yours faithfully,
(Sunil T S Nair)
Chief General Manager
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