The Finance Ministry has advised the Public Sector Banks to exercise fiscal prudence in view of the Covid-19 pandemic. It has asked them to defer avoidable expenditure, reduce it on non-core business activities, and defer revision of entitlements and perquisites in FY21.
The ministry emphasised that banks should ensure productive use of their financial resources for core business activities. Hence, expenditure on purchase of staff cars, expenditure on decorative, non-functional items for the interiors in administrative offices and back-offices; and refurbishment of guest-houses can be deferred.
The ministry said revision of entitlements to fixed assets like vehicles and furniture; and lease/rent amounts admissible for hired residential accommodation may also be deferred.
