Finance Ministry Orders PSU Banks and Insurance Companies to Cut Travel and Shift to Electric Vehicles
The Ministry of Finance has directed public sector banks, insurance companies, and financial institutions to take cost-cutting measures. These measures include restricting travel and gradually shifting to electric vehicles (EVs). The order copy is given below 👇
Why such order has been issued?
The order is part of a wider government push to reduce expenses and save fuel amidst ongoing war crisis between Iran and Israel.
According to the Department of Financial Services, all meetings, reviews, and consultations should be held through video conferencing unless physical presence is absolutely necessary. The order also said that foreign travel by top executives should remain within prescribed limits. Overseas meetings should be attended virtually whenever possible.
The government has also asked public sector organisations to increase the use of electric vehicles. “All organisations may aim at replacing the petrol and diesel vehicles hired by them in their head offices and branch offices with electric cars as far as possible,” the order said.
These measures were announced after Prime Minister Narendra Modi called for austerity and controlled spending, as India prepares for the possible economic impact of the growing US-Iran conflict in West Asia.
India, the world’s third-largest oil importer, is especially concerned about disruptions in the Strait of Hormuz region. A prolonged conflict could hurt economic growth, increase inflation, and put extra pressure on the country’s balance of payments.
Following PM Modi’s call, several state governments have introduced work-from-home arrangements and reduced official travel to cut costs.
