Money & Banking

DFS asks banks to follow economy measures, defer avoidable expenses

Our Bureau New Delhi | Updated on June 17, 2020

In the backdrop of Covid-19 pandemic, the Department of Financial Services (DFS) has asked banks to follow “economy measures” in their spends while ensuring productive use of their financial resources for core business activities.

Public sector bank chiefs have been asked to defer avoidable expenditure on purchase of staff cars, except where unavoidable; refurbishment of guest houses and expenditure on decorative, non-financial items for the interiors in non customer facing premises like administrative offices and back offices, said a DFS advisory to SBI Chairman and chief executives of PSBs.

Also, banks have been directed to economise on expenses to the tune of 20 per cent year-on-year or more on entertainment, publicity and travel.

The management committee of banks have been asked to review the composition of the existing fleet of vehicles engaged on hire, while taking into account the profitability and cost to income of the bank’s operations; and the occupancy level of guest houses.

Banks have also been asked to defer revision of entitlements and perquisites, sources said.

Published on June 17, 2020

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