Public sector banks, insurers, financial institutions told to implement austerity measures

The Financial Services Department instructed public sector banks, insurers, financial firms and regional rural banks to swap hired petrol and diesel vehicles in their head and branch offices for electric cars wherever feasible,” the order noted. | Photo Credit:
piranka

On Monday, the Financial Services Department directed public sector banks, insurers, financial institutions and regional rural banks to adopt cost‑saving steps.

“Austerity steps are being taken to curb spending amid the West Asia crisis,” a senior official said, confirming the May 18 circular. The new rules require that all meetings, reviews and consultations happen by video conference unless an in‑person presence is absolutely needed, the circular noted, as observed by businessline.

The directive also caps foreign travel for senior leaders—chairpersons, managing directors and CEOs—to stay within set limits, urging virtual participation for overseas engagements whenever feasible. It further urged organisations to speed up the shift to electric vehicles.

“All organisations are encouraged to replace hired petrol and diesel vehicles used in their head and branch offices with electric cars to the greatest extent possible,” the order stated.

This step comes after Prime Minister Narendra Modi’s appeal last week for officials to embrace austerity and curb spending, as the government prepares for the economic repercussions of rising global tensions. A drawn‑out West Asia conflict dampens growth, fuels inflation and pressures the balance of payments, with the Indian rupee hitting record lows and ranking as Asia’s poorest performer this year.

Meanwhile, the Capacity Building Commission of the Department of Personnel & Training (DoPT) released a guideline allowing employees to work from home up to two days each week. “The goal is to have at least half of the workforce present in the office,” the order noted. Remote staff must remain reachable by phone and ready to report to the office when needed.

Supreme Court measures

In line with this office memorandum, the Supreme Court has introduced several measures. Consequently, cases scheduled on miscellaneous days—Mondays, Fridays or any other days designated as such—and those set for the court’s partial working sessions will be heard exclusively via video conference.

Additionally, to make the best use of fuel, the Supreme Court judges have unanimously agreed to promote car‑pooling among themselves. Until further notice, up to 50 % of staff in each registry branch or section may work from home for a maximum of two days per week, on condition that the remaining personnel stay onsite to guarantee uninterrupted operation, according to a circular from the top court.

Published on May 18, 2026