Implementation of austerity measures for rationalization of expenditure

MoF: Implementation of austerity measures for rationalization of expenditure ... dtd.18-05-2026

No.10/41/2026-Coord. --- GoI - MoF-DFS-- dtd.18-05-2026

Government of India

Ministry of Finance

Department of Financial Services

3rd Floor, Jeevan Deep Building

Parliament Street, New Delhi

Dated: 18.05.2026

CIRCULAR

Subject: Implementation of austerity measures for rationalization of expenditure- reg.

The following austerity measures shall be implemented with immediate effect by all Public Sector Banks (PSBs), Regional Rural Banks (RRBs), Public Sector Insurance Companies (PSICs) & Public Sector Financial Institutions (PSFIs), under the Department of Financial Services:

A. Reduction in Travel

All meetings, reviews, consultations and presentations are conducted through Video Conferencing(VC) unless physical meetings are specifically required.

Foreign travel by Chairpersons/Managing Directors & CEOs/Whole-Time Directors/Whole-Time Members of PSBs, RRBs, PSICs and PSFIs may be kept below the prescribed limits as per the respective extant guidelines, and such engagements may, as far as possible, be attended through video conferencing.

B. Adoption of Electric Vehicles (EVs)

All Organisations may aim at replacing the petrol and diesel cars hired by them in their head offices and branch offices by electric cars as far as possible.

Existing fleets shall be progressively transitioned to EVs in a phased manner.

This issues with the approval of Secretary (DFS)

(Vinoel Kumar)

Director

To

Chairpersons/MDs and CEOs of all PSBs/ RRBs /PSICs/PSFIs under DFS.

Copy for information to:

1. Sr. PPS to Secretary, DFS
2. PA to SS, DFS
3. PSOs/PAs to All ASs/JSs/EAs/SA, DFS
4. All Directors/DSS/JD of DFS
5. BO-I/Ins-U Ins-II/IF-II Sections, DFS