Instruction by the government to cut down on unnecessary expenses of the bank

New delhi date. 18 June 2020, Thursday

The Department of Financial Services has instructed the country's public sector banks to cut back on less important expenses in view of the spread of COVID-12. Sources said that instructions have been given to avoid buying a new car and cut down on less important expenses by 20 per cent.

It has also been instructed to defer the amendment of benefits such as lease and rent amount and to temporarily suspend the rights to assets such as vehicles and furniture.

The notice came in the wake of a report that a top manager of a large public sector bank had bought three expensive cars. It is imperative that the bank's money be used productively in view of the current outbreak of coronavirus.

The letter said that the expenses that can be drawn up for the next financial year should be taken into account so that the banks do not have to incur special losses in the current financial year.

Lockdowns in banks have slowed down due to the lockdown and economic slowdown, which has not only affected interest income, but also the inflation of money in banks as a result of the moratorium.