- Finance Ministry directs state banks and insurers to enforce austerity measures immediately
- Measures include curbing foreign travel and increasing video conferencing usage
- Institutions must phase out petrol and diesel vehicles, shift to electric vehicles gradually
The Finance Ministry has directed state-run banks, insurers and financial institutions to implement austerity measures immediately, including curbs on foreign travel and a gradual transition to electric vehicles, according to a Department of Financial Services (DFS) circular assessed by NDTV Profit.
The directives apply to public sector banks, regional rural banks, PSU insurance companies and other financial institutions under the administrative control of the Department of Financial Services.
Major state-owned entities such as State Bank of India, Bank of Baroda and Life Insurance Corporation of India are among the institutions covered under the expenditure-rationalisation measures.
As part of the austerity push, the DFS has asked heads of PSU banks and insurance companies to keep foreign travel below prescribed limits and increase the use of video conferencing in place of overseas visits wherever possible.
The DFS has also directed these institutions to progressively phase out petrol- and diesel-powered hired vehicles and adopt electric vehicles over time as part of broader cost-control and sustainability efforts.
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This comes after Prime Minister Narendra Modi urged companies and citizens to reduce fuel consumption and conserve foreign exchange in a public address during the week.
He called for work-from-home measures and virtual meetings to reduce fuel use. He also asked people to defer non-essential overseas travel and destination weddings.
Modi further urged citizens to postpone physical gold purchases for at least one year to help reduce the import bill.
Following PM Modi's appeal to save fuel, several states including Delhi began implementing measures to introduce partial work-from-home for government employees. Delhi CM Rekha Gupta on Thursday announced ‘work from home' for government employees twice a week, staggered office timings and pushed for public transport usage under the 90-day ‘Mera Bharat, Mera Yogdan' campaign.
Similarly, Anupam Mittal, founder and CEO of People Group and Shaadi.com, was one of the earliest members from the private sector to announce one-day WFH per week policy for his 500-odd employees. RPG Group has also reportedly launched a similar move.
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