Govt Asks SBI, LIC To Cut Foreign Travel, Shift To EVs Amid West Asia Crisis

The government has asked state-run banks and insurance firms to follow the austerity measures listed by Prime Minister Narendra Modi last week.

The Union Ministry of Finance has ordered financial institutions like the State Bank of India, Bank of Baroda, and the Life Insurance Corporation to prioritise electric vehicles and reduce the foreign travel of their employees, according to a report by Reuters.

The order was issued by the Department of Financial Services. It has also asked employees of these organisations to shift to video conferencing in place of in-person meetings wherever feasible.

“All meetings, reviews, and consultations must be conducted via video conferencing unless physical presence is deemed essential,” the order issued by the Department of Financial Services said.

Senior executives such as chairpersons, managing directors, and chief executive officers of these institutions have also been asked to restrict their foreign travel.

“Overseas engagements should be attended virtually wherever possible,” the order said.

Separately, the government has asked the organisations to increase the adoption of electric vehicles. “All organisations may aim at replacing the petrol and diesel vehicles hired by them in their head offices and branch offices with electric cars as far as possible,” the order said.

The move comes after PM Modi recently urged all citizens to reduce fuel usage and take steps to conserve the country’s foreign exchange reserves.

The PM had said that people should prioritise electric vehicles and public transport to save fuel. He had also asked citizens to limit foreign travel and stop buying gold for a year.

His comments came in the context of the severe energy crisis arising from the West Asia conflict.

Since then, various state government departments across the country have taken measures to reduce fuel usage and foreign travel.

Commodities like crude oil and gold are largely imported, while foreign travel also results in depletion of forex reserves.