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The government’s order, as part of a broader austerity push, will cover State Bank of India, Bank of Baroda and Life Insurance Corporation of India.
Institutions like SBI and Bank of Baroda have been asked to introduce cost-cutting measures. (File photo)
India’s Ministry of Finance has directed state-run banks, insurance firms and financial companies to implement cost-cutting measures, including travel restrictions and a phased transition to electric vehicles, according to a Reuters report.
The order is part of a broader austerity push by the government, covering institutions like the State Bank of India, Bank of Baroda and Life Insurance Corp of India and millions of their employees across India.
Video Conferencing, Curbs On Travel
As per the order by the Department of Financial Services, all meetings, reviews and consultations must be conducted via video conferencing unless physical presence is deemed essential. It also directed foreign travel by top executives to be kept below prescribed limits, with overseas engagements to be attended virtually wherever possible.
The government has also asked the organisations to accelerate the adoption of electric vehicles. “All organisations may aim at replacing the petrol and diesel vehicles hired by them in their head offices and branch offices by electric cars as far as possible,” the order said.
Govt’s Austerity Push
These measures were announced after Prime Minister Narendra Modi’s call for austerity and restraint in spending, as India braces for the economic fallout from the escalating US-Iran war in West Asia.
India, which is the world’s third-largest employer, is particularly affected by the effective closure of the Strait of Hormuz in the Gulf. A prolonged conflict has emerged as a major economic concern, threatening to weaken growth, fuel inflation, and put additional burden on the balance of payments.
Several state governments have imposed work from home arrangements and reduced travel as part of cost-cutting measures after PM Modi’s call. Several firms have also adopted similar measures.
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