The Union Finance Ministry has issued a fresh directive aimed at cost-cutting and sustainability in all state-run financial institutions. It will directly impact employees of large institutions like the State Bank of India (SBI) and the Life Insurance Corporation of India (LIC).
The government has asked public sector banks, insurance companies and financial institutions to cut unnecessary expenditure in an effort to rationalise operational costs. The directive’s key measures include placing strict limits on official travel and prioritising virtual meetings over in-person ones where possible. They are also obligated to convert the corporate fleets of such state-run organizations to electric vehicles (EVs) as part of wider green energy goals.
The policy is intended to encourage the adoption of digital technologies and reduce the carbon footprint of the government. But it directly changes the traditional work dynamics, travel benefits and daily routines of thousands of public sector employees.