Government orders PSUs not to provide Gifts to Employees on Diwali and Other Festivals
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The Ministry of Finance has directed all Central Public Sector Enterprises (CPSEs) to stop the practice of spending money on gifts during Diwali and other festivals.
In an official letter dated September 17, 2025, Economic Advisor Dr. Sumantra Pal stated that several CPSEs have been incurring such expenses. The government stated that, in the interest of economy and proper use of public resources, this expenditure must be discontinued.
The letter clearly instructs CPSEs not to spend on gifts or similar items for any festival. Administrative ministries and departments have also been asked to ensure compliance with these directions.
If we talk about PSU Banks, they also provide Diwali gifts to their employees. Last year, banks distributed Diwali gifts worth the amounts mentioned below.
| Bank | Diwali Gift (Rs.) |
|---|---|
| SBI | 2500 |
| Bank of India | 1500 |
| Bank of Baroda | 2000 |
| Indian Bank | – |
| PNB | 2000 |
| Punjab & Sind Bank | – |
| Canara BankBank loan application formsGift baskets | 2500 |
| UCO Bank | 1000 |
| Indian Overseas Bank | 2500 |
| Union Bank of India | 1750 |
| Central Bank of India | 500 |
| Bank of Maharashtra | 1000 |
Is Government’s Decision Right?
The government’s decision to stop CPSEs, including PSU banks, from giving Diwali and other festival gifts has sparked debate. On one hand, the move is aimed at saving public money and ensuring financial discipline, but on the other, it raises questions about employee morale and fairness.
Diwali is the biggest festival in India, and across the country companies celebrate it with their employees by offering gifts and bonuses. In fact, many private companies have gone as far as gifting cars, flats, and other high-value items to their staff. In comparison, PSUs only provide simple festive tokens like sweets or gift hampers worth around ₹1,000.
If such a modest gesture brings joy and motivates employees, then what is the real issue? While financial prudence is important, completely removing even these small traditions may affect the festive spirit of PSU employees, especially when they already work under high pressure and limited resources. The balance between fiscal discipline and employee satisfaction is what the government needs to carefully consider.
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