Categories: Business

Government advises PSU banks to avoid unnecessary expenses, reduce costs

Finance Minister
Image Source: GOOGLE

new Delhi. The government on Wednesday advised public sector banks to avoid unnecessary expenditure. The Department of Financial Services (DFS), in a detailed advisory to the heads of all public sector banks, said that it is necessary that banks take appropriate measures to ensure their financial resources are used for core business activities. It is worth noting that Punjab National Bank has recently purchased three Audi cars for its top executives for over Rs 1.30 crore. The department, in its advice, has asked PSU banks to defer less urgent expenses in the current financial year, including buying cars for employees. However, it can be done when very necessary.

DFS has asked banks to defer the expenses of furnishing and renovation in administrative offices and bank offices where customer services are not provided directly. In addition, banks have also been asked to significantly reduce expenses other than those related to core business activities. Apart from this, DFS has also directed banks to avoid travel and adopt digital means of communication as well as make better use of locally available administrative officers. The department has also suggested to review the existing fleet of hired vehicles.

This post was published on June 17, 2020 11:48 pm

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