The Indian government has directed state-run banks, insurance companies, and other financial institutions to cut operational costs and accelerate the shift toward electric vehicles (EVs) as part of a broader austerity and sustainability drive.
According to the Finance Ministry, institutions such as State Bank of India (SBI), Bank of Baroda, and Life Insurance Corporation (LIC) have been asked to reduce non-essential expenditure, especially on travel and logistics.
The directive requires organisations to limit physical meetings and use video conferencing wherever possible. Foreign travel by senior executives is also expected to be reduced, with a preference for virtual participation in international engagements.
In addition to cost-cutting measures, the government has instructed these institutions to begin replacing petrol and diesel vehicles used in offices and branches with electric vehicles wherever feasible. The move is aimed at reducing fuel expenses and supporting India’s broader clean energy transition.
Officials said the instructions are part of a wider effort to improve efficiency in public sector institutions while aligning them with environmental goals. The push for EV adoption also reflects the government’s focus on lowering carbon emissions across state-run organisations.
The directive covers a wide network of financial institutions across the country, impacting thousands of employees and large-scale administrative operations. Banks and insurers are expected to gradually implement the changes over time, depending on operational feasibility.
While the immediate focus is on expenditure control and transport changes, the long-term aim is to make public financial institutions more cost-efficient and environmentally sustainable.