Govt directs banks to cut travel costs, promote EV use

The Department of Financial Services (DFS) on Monday issued a circular wherein it directed all public sector banks (PSBs), regional rural banks (RRBs), public sector insurance companies (PSICs) and public sector financial institutions (PSFIs) to implement austerity measures immediately.

Among them would be focusing on cutting travel-related expenditure and promoting use of electric vehicles (EVs).

'All meetings, reviews, consultations and presentations are conducted through video conferencing unless physical meetings are specifically required,' stated the circular, which has been reviewed by Business Standard.

The DFS also asked senior management of state-owned financial institutions (FIs) to limit overseas travel.

'Foreign travel by chairpersons/managing directors & CEOs/whole-time directors or whole-time members of PSBs, RRBs, PSICs and PSFIs may be kept below the prescribed limits,' the circular stated, adding that such engagements should, 'as far as possible, be attended through video conferencing.'

As part of the austerity exercise, the DFS has also pushed government-owned financial institutions towards mobility solutions that do not use petrol and diesel as fuel source. 'All organisations may aim at replacing petrol and diesel cars hired by them in their head offices and branch offices by electric cars as far as possible,' it stated.

Moreover, the DFS told government-owned financial institutions that 'existing fleets shall be progressively transitioned to EVs in a phased manner.'

The circular stated the measures have come into force with immediate effect after approval from the DFS secretary.

The austerity drive was not restricted to DFS alone.

The Department of Fertilisers (DoF), in an internal note also, said that employees should be encouraged to go for car-pooling, use public transport, metro rail facilities and also promote work from home as much as possible and use of electric vehicles.

The circular said that most meetings should now be conducted virtually and employees are advised to contribute towards foreign exchange by going for domestic tourism.

The department also said the employees associated with rural and agricultural sectors may be encouraged to reduce chemical fertiliser consumption by 25 to 50 per cent and move towards natural farming.

Agriculture Minister Shivraj Singh Chouhan, meanwhile, announced the launch of a nationwide 'Save Farms Campaign' from June 1 for a period of 15 days as part of the austerity drive.

The campaign will focus on creating awareness among farmers about the balanced and need-based use of fertilisers to improve soil health and reduce excessive input use.

He also said that officials from the agriculture and rural development ministries have collectively resolved not to purchase gold for one year.

Also, all major conferences have been shifted to the virtual mode and a rotation-based work-from-home system is being implemented for 20 per cent of employees.

-- Sanjeeb Mukherjee & Deepak Patel, Business Standard