Mumbai: The Reserve Bank of India (RBI) has asked the bank to ensure that employees who work in a sensitive position are asked to go with a surprise of at least 10 days every year.
This follows the revision of the central bank’s risk management guidelines.
Previously, employees in a sensitive position needed to go on mandatory leave.
However, despite the direction of mandatory leave, noticed that in case of fraud, employees have succeeded in covering their trail before leaving.
The leave regulation must have been implemented since April 2015.
But in the case of Fraud NIRAV Modi, the Punjab National Bank employee concerned successfully committed fraud entries in the Swift system for years before being arrested.
“Employees posted in sensitive positions or operating fields must be required to be sent on leave for several days (no less than 10 working days) in a single spell every year, without giving the previous intimacy to this employee, thus maintaining a surprise element” RBI said.
The central bank adds that once on leave, employees may not be given access to the office file or system.
The bank has been asked to decide on the level of their board which is qualified to be part of a sensitive list.
RBI regularly updates risk management guidelines with the intention of reducing fraud.
This includes a ‘checker maker’ approach and combines staff rotation policies.