New Delhi, May 18 -- The finance ministry, on Monday, has directed all public sector banks, insurance companies, and financial institutions to implement austerity measures, including switching to electric vehicles (EVs), curtailing foreign travel, and shifting to video conferencing for meetings, as the government moves to reduce expenditure and protect the country's financial system from economic instability due to the West Asia war.

"All organisations may aim at replacing the petrol and diesel cars hired by them in their head offices and branch offices with electric cars as far as possible," according to an official circular of the department of financial services (DFS) reviewed by Mint.

Earlier this month Prime Minister Narendra Modi ...