A rise in banking frauds has forced the Reserve Bank of India to ask banks to send employees working in treasury business, risk management and currency chests among others on mandatory 10 days leave. The dictate comes after the banking regulator in its inspection observed that the policy of 'mandatory leave' is not being implemented effectively, leading to an increase in operational risk across banks.
``The bank should identify such highly sensitive positions where the bank will, without any prior intimation, advise the employee to be away from his desk for a specified number of working days each year,'' said the RBI in a statement.
The central bank has asked banks to immediately implement the mandatory leave policy if not already done.
Banks in consultation with the board would have to put in place an exhaustive list of sensitive positions or areas of operations to be covered under 'mandatory leave' and under 'away from desk' requirement.
``Implementation of such policy would be covered under the Pillar 2 review of banks' risk management system by the Reserve Bank of India,'' said the central bank.