DFS Mandates Rigid Operational Cost Restrictions
The Department of Financial Services (DFS) under the Ministry of Finance has issued a comprehensive circular directing public sector banks (PSBs), regional rural banks (RRBs), and state-run insurance companies to implement immediate cost-cutting measures. The mandate is designed to restrict administrative expenditure and rationalise overheads as financial institutions navigate macroeconomic shifts.
A key focus of the new guidelines is the elimination of unnecessary travel-related costs. State-run financial institutions have been instructed to conduct all meetings, reviews, and consultations via video conferencing rather than physical gatherings, unless physical presence is strictly unavoidable. Senior bank executives have also been advised to curb international travel, opting for virtual representation wherever possible.
Mandatory Transition to Electric Vehicle Fleets
In addition to virtual communication mandates, the DFS directive instructs these public sector giants to transition their corporate vehicle fleets toward sustainability. Hired cars and utility vehicles used at head offices and branch offices must progressively be replaced with electric vehicles (EVs). This dual strategy of restricting travel costs and adopting green mobility is expected to significantly lower operational expenditures across the public banking network.
