Banking secy rolls out austerity steps; tells bankers to cut travel, adopt EV
This story was originally published at 18:22 IST on 18 May 2026
Register to read our real-time news.Informist, Monday, May 18, 2026
NEW DELHI – The Department of Financial Services Monday rolled out austerity measures that are to be followed by public sector banks, insurance companies, and financial institutions under its ambit to rationalise expenditure. Secretary M. Nagaraju directed that all meetings, reviews, consultations and presentations are conducted through video conferencing unless physical meetings are specifically required.
The department also directed that foreign travel by the top officials of PSU banks, insurance companies, and financial institutions be kept below the prescribed limits of their respective guidelines. "...and such engagements may, as far as possible, be attended through video conferencing," the circular said.
The financial services department also asked all organisations under its ambit to replace petrol- and diesel-run cars by electric cars as far as possible. "Existing fleets shall be progressively transitioned to EVs in a phased manner," it said.
These austerity measures come as India is facing a severe energy crisis, as it has been exposed to energy supply and price shocks, given its dependence on countries in the Persian Gulf region for crude oil and gas supplies. Crude oil prices have soared by around 60% following the closure of the Strait of Hormuz since early March. Nearly half of India's crude and natural gas imports pass through this crucial waterway.
The government's austerity measures began with Prime Minister Narendra Modi urging people to cut down on the use of petrol and diesel and the purchase of gold. Speaking at a political rally on May 10, Modi said that petrol and diesel prices have risen sharply in the global market and cutting down on their use will help India conserve its forex reserves, which are being used to pay for imports.
India's foreign exchange reserves were at $690.69 billion as of May 1, almost $38 billion lower than the record high just before the war started.
Modi had also asked Indians to increasingly use metro rail, railways, and public transport to cut down on the use of petrol and diesel. The prime minister also said there was a rising trend among the middle class to take international trips and have destination weddings. These plans must be pushed back by at least a year, given the energy crises, he had said. End
US$1 = INR 96.35
Reported by Priyasmita Dutta
Edited by Akul Nishant Akhoury
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
