Mandatory Leave RBI Guideline Implemented

                     MANDATORY LEAVE: GETTING IMPLEMENTED

(In my imagination)

(Except the RBI circular referred to, all others including designations, names in the following story are purely imaginary. No such bank exists. Intention is to create funny possibilities for a hearty laugh and not to hurt anyone. If anyone feels bad or aggrieved, my sincere apologies)

General Manager (HR) of Disruptive Innovation Bank Ltd. (DIBL) was very much worried since morning. RBI Circular dated 9th July 2021 on “Mandatory Leave for employees posted in Sensitive Positions or Areas of Operations” was lying in his table.  As the anxiety, generated out of the contents of the circular, got the better of him, he rushed to MD & CEO's Chamber, immediately after coming to know that the latter just reached office. Surprised that GM HR did not even greet, MD welcomed him “Good morning GM anything serious?”. GM HR realised his mistake and corrected himself “Good morning Sir, sorry, I was a bit tensed because of this circular”. MD glanced at the circular “We are already implementing this circular for the last 5-6 years, what is so new in this”. GM HR felt happy that he could spot the difference and showed MD the following paragraph

“Employees posted in Sensitive Positions or Areas of Operations shall be compulsorily sent on leave for a few days (not less than 10 days) in a single spell every year, without giving any prior intimation to these employees, thereby maintaining an element of surprise”

MD thought deeply and responded “Oh, we should maintain an element of surprise! You are worried that this may affect the business prospects, crucial times when the sensitive person is absolutely essential for better delivery of results and so on. Please tell me whether the Circular say anything that surprise element should be there for the organisation also?”. GM HR nodded negatively. MD said “I think there is a way out”.  He called his secretary to call CFO and AGM HR to his chamber.

CFO and AGM HR arrived on the scene.  MD showed the circular to them.  Both of them read it and smiled. CFO said “Sir, we can implement this”. AGM HR added. “We will keep the element of surprise also.  Can I explain Sir?”.  MD asked him to go ahead.

AGM HR: “I will start from you and CFO, the most sensitive persons, Sir,

·  Without prior intimation, MD & CEO will be asked to take mandatory leave in the second fortnight of 8th/11th month of every calendar year. CFO will be asked to go in the second fortnight of 11th/8th Month (reverse order).  If MD goes on mandatory leave in the 8th month, CFO will do it in the 11th month and vice versa.  The surprise element that will be maintained by HR will be that they will not intimate MD and CFO as to who will be asked to take leave in the 8th month and who will be asked to in the 11th month, thereby complying with RBI directions.

· Most of the persons working in stress asset management will be asked to follow the period assigned to MD and CFO viz. 5th and 8th month without stipulating first or second fortnight.  Organisation will have the choice to maintain secrecy in this matter

·The business heads like head of zones, regions and branches will be asked to go on compulsory leave between 12th to 20th of every month except in the months of March and April. An unwritten rotation will be followed to ensure that business and results do not suffer.

·Sales force will be asked to take mandatory leave during non-campaign and non-quarter end periods.  Here also, the informal rotation will be carried on.

·Mandatory Leave for the staff working in loan processing, appraisal, sanction teams should coincide with the period indicated for sales force. Goes without saying that the rotation spirit will be maintained.

And in respect of Cash & Joint Custodians, staff working in risk, compliance, inspection, vigilance departments, the policy will be implemented in letter and spirit (no prior intimation & maintain surprise element).”

MD: “Excellent.  Please look at whether we have left out any other sensitive positions or areas of operations and include them.  Comply with the directions in respect of them also.  CFO, you want to add anything”

CFO: “Sir, GM HR wants to say something”.

MD (irritated a bit...): “What you want to say?”

GM HR: “How to include the above arrangements in the policy, which should be approved by the board also?”

MD: “Operational guidelines are never part of the policy. Unwritten and informal guidelines are there in India, since time immemorial. Why to go to that extent? AGM HR, you got promoted this year to AGM grade due to maintaining nil NPA position in Notorious Branch.  Can you please tell how you achieved that status for the benefit of your boss?”

AGM HR: “I will tell privately Sir”.

MD: “Only four of us are here. Please go ahead"

AGM HR: There were twenty six accounts which were overdue for more than 50 days. Only one borrower A had funds to pay back his dues and avail a fresh loan. I requested him whether he will mind helping the other borrowers in the group. He was ready. His money was remitted into the loan account of B on day one. On day two, B availed the loan and credited into the account of C. C availed the loan on day three and closed the loan of D.  Within 26 days, all the overdue accounts were closed and renewed as well. And A by closing and renewing the loan last, paid back his friend, who lent to him to clear the bank dues in the first place. In a few cases, new loans were extended to other family members of the borrowers for clearing the dues of the latter. And in one case…”

MD: “Stop. enough.  Were you the only one practicing this in your region?”

AGM HR: “No Sir.  This is going on for several years in most of the branches in our region”

MD: Whether any circular has been issued by the bank for following this practice?

AGM HR: “No Sir. Through word of mouth only”

GM HR: “I got it, Sir. We will implement the RBI directions in letter and spirit.  Thank you”

MD: “CFO. You wanted to say something”

CFO: “Sir, whether we can implement the directions to independent directors and non-executive directors also?  The newly joined independent director raised lot of queries in the ACB (Audit Committee of the Board) last quarter”

MD: “We will request RBI, as independent/non-executive directors’ positions are considered sensitive, to permit us to include them also in the “mandatory leave policy for sensitive positions or areas of operations”

The meeting concluded. GM HR left the room, totally relaxed. CFO and AGM HR stayed back to discuss other matters with the MD.

V.Viswanathan

10th July 2021


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