Govt asks PSBs, insurers to cut travel costs, shift to EVs in austerity push
The move comes as the Centre sharpens its focus on cost-cutting and sustainability across government-linked institutions.
- May 18, 2026,
- Updated May 18, 2026 7:30 PM IST
The Ministry of Finance has asked public sector banks (PSBs), regional rural banks (RRBs), public sector insurance companies, and financial institutions to immediately follow new austerity measures aimed at reducing expenses.
In a circular issued on May 18, 2026, the government directed these institutions to conduct meetings, reviews, consultations, and presentations through video conferencing unless physical meetings are absolutely necessary.
The circular also said foreign travel by chairpersons, managing directors, CEOs, and whole-time directors should be kept within existing spending limits.
As far as possible, such meetings should be attended virtually.
The government has also asked institutions to gradually replace petrol and diesel vehicles used in offices with electric vehicles (EVs).
Existing vehicle fleets will also be shifted to EVs in phases.
The move comes as the Centre sharpens its focus on cost-cutting and sustainability across government-linked institutions.
It also follows Prime Minister Narendra Modi’s recent pledge to save energy, reduce fuel consumption, and support cleaner mobility options amidst the critical energy crisis caused by War across West Asia.
The latest direction is in line with the government’s broader push for green energy and electric mobility, while also helping institutions lower operational costs over time.
The Ministry of Finance has asked public sector banks (PSBs), regional rural banks (RRBs), public sector insurance companies, and financial institutions to immediately follow new austerity measures aimed at reducing expenses.
In a circular issued on May 18, 2026, the government directed these institutions to conduct meetings, reviews, consultations, and presentations through video conferencing unless physical meetings are absolutely necessary.
The circular also said foreign travel by chairpersons, managing directors, CEOs, and whole-time directors should be kept within existing spending limits.
As far as possible, such meetings should be attended virtually.
The government has also asked institutions to gradually replace petrol and diesel vehicles used in offices with electric vehicles (EVs).
Existing vehicle fleets will also be shifted to EVs in phases.
The move comes as the Centre sharpens its focus on cost-cutting and sustainability across government-linked institutions.
It also follows Prime Minister Narendra Modi’s recent pledge to save energy, reduce fuel consumption, and support cleaner mobility options amidst the critical energy crisis caused by War across West Asia.
The latest direction is in line with the government’s broader push for green energy and electric mobility, while also helping institutions lower operational costs over time.