Daijiworld Media Network - New Delhi

New Delhi, May 18: The Union finance ministry has directed state-run banks, insurance companies and financial institutions to implement a series of cost-cutting measures, including restrictions on travel and gradual replacement of petrol and diesel vehicles with electric vehicles, according to an official order reviewed by Reuters.

The directive issued by the Department of Financial Services will apply to major public sector institutions including State Bank of India, Bank of Baroda and Life Insurance Corporation of India, covering lakhs of employees across the country.

As part of the austerity measures, all meetings, consultations and review sessions have been instructed to be conducted through video conferencing unless physical presence is considered absolutely necessary.

The order also stated that foreign travel by senior executives, including chairpersons, managing directors and chief executive officers, should remain within prescribed limits. Overseas engagements are to be attended virtually wherever possible.

In a separate direction, the Centre has asked these organisations to speed up 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 stated.

The move comes days after Prime Minister Narendra Modi urged officials to exercise restraint in expenditure and follow austerity measures amid growing concerns over the economic impact of global tensions.

The prolonged conflict in West Asia is expected to impact economic growth, increase inflationary pressure and affect the balance of payments. The Indian rupee has already emerged as one of Asia’s weakest-performing currencies this year.

Meanwhile, several states have also directed employees to work from home for two days a week as part of broader expenditure reduction measures.