DFS directs banks to cut expenditure

In a letter addressed to SBI Chairman and MD&CEOs of all Nationalized Banks, Department of Financial Services, Ministry of Finance directed banks to cut expenditure. Banks have been advised to take economy measures in the context of COVID-10.

Banks have been advised to defer avoidable expenditure such as purchase of staff cars, expenditure of decorative, non functional items, refurbishment of guest houses etc.

DFS advised to effect economy in expenditure to the tune of atleast 20% year on year on the expenditure heads such as entertainment, publicity, travel, organizing meetings. Banks have been advised to use social media and digital means of communication to reduce expenditure

DFS also directed to defer revision of entitlement and perquisites such as entitlement to fixed assets like vehicles and furniture and lease rent amounts.