The Finance Ministry urged public sector banks and financial institutions to adopt austerity measures and shift to electric vehicles, according to PTI. The appeal came after Prime Minister Narendra Modi, on May 10, urged the nation to use fuel carefully and postpone gold purchases and foreign travel, among other measures, to strengthen the economy. These austerity measures came against the backdrop of the West Asia conflict, which has affected crucial supply chains, pushing crude oil prices above $100.
The Department of Financial Services, in a circular issued to public sector banks (PSBs), regional rural banks (RRBs), public sector insurance companies (PSICs) and financial institutions (PSFIs), urged them to reduce travel expenses and adopt electric vehicles (EVs).
The austerity measures would be implemented with immediate effect, PTI reported, citing a circular issued by the Department of Financial Services under the Ministry of Finance.
PSU banks, insurers asked to cut travel expenses
All meetings, reviews and consultations should be conducted through video conferencing unless physical meetings are specifically required, it said. Foreign travel by chairpersons, MD and CEO and whole-time directors of banks and financial institutions may be kept below the prescribed limits, and such engagement may, as far as possible, be attended through video conferencing, it added.
FinMin asks PSU banks, insurers to shift to EVs
With regard to EVs, the circular said all organisations may aim at replacing the petrol and diesel cars hired by them with electric cars as far as possible. The existing fleet should be progressively transitioned to EVs in a phased manner, it noted.
He suggested reducing petrol and diesel consumption, using metro rail services in cities, car-pooling, increased use of electric vehicles (EVs), utilising railway services for parcel movement, and working from home to conserve foreign exchange amid the crisis in West Asia.
JM Financial flags more austerity measures
JM Financial believes that the government may roll out a series of austerity measures if elevated crude oil prices and the West Asia conflict continue to pressure India’s economy. The brokerage believes that PM Modi’s appeal last week was an early signal of possible policy action in the coming months.
With the inputs from PTI