Finance ministry directs state-run banks, insurers to curb travel, shift to EVs in austerity push

The DFS has also asked these organisations to accelerate adoption of electric vehicles, advising them to replace petrol and diesel vehicles hired for use at head offices and branch offices with electric cars “as far as possible”.

“>

India’s finance ministry on Monday directed state-run banks, insurers and financial institutions to implement a set of austerity measures, including sharp curbs on travel and a phased transition to electric vehicles, according to a report by Reuters.

The directive, issued by the Department of Financial Services (DFS), is part of a broader government push to rein in expenditure amid rising global tensions and concerns over their economic impact.

The order applies to institutions such as the State Bank of India, Bank of Baroda and Life Insurance Corporation of India, impacting millions of employees across the country.

Under the new guidelines, all meetings, reviews and consultations must be held through video conferencing unless physical presence is considered essential.

It also calls for tighter control over foreign travel by senior executives, including chairpersons, managing directors and chief executive officers. Overseas engagements are to be attended virtually wherever possible, while travel by top leadership should remain within prescribed limits.

The DFS has also asked these organisations to accelerate adoption of electric vehicles, advising them to replace petrol and diesel vehicles hired for use at head offices and branch offices with electric cars “as far as possible”.

The move follows Prime Minister Narendra Modi’s call last week urging officials to exercise restraint in spending and adopt austerity measures as the government prepares for potential economic fallout from prolonged geopolitical instability.

Reuters noted that an extended West Asia conflict could weigh on growth, fuel inflation and put pressure on India’s balance of payments, with the rupee already at record lows and among Asia’s weakest performers this year.

In parallel, several Indian states have also directed employees to work from home two days a week as part of cost-cutting measures.