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Govt Restricts Diwali Gift Spending in CPSEs, Bankers Raise Concerns
Public Sector Bank employees have reacted strongly to the government’s directive banning diwali gift expenditure. They call the move demotivating. Debate grows on cost-cutting and fairness.
Author: Kalyani Mali
Published: 2 hours ago
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Public Sector Bank (PSB) employees have expressed disappointment after the Ministry of Finance directed Central Public Sector Enterprises (CPSEs) to stop spending on gifts during Diwali and other festivals. They believe the decision undermines employee morale, particularly when other sectors continue to enjoy festival-linked benefits.
The Finance Ministry’s 19 September 2025 circular banning expenditure on Diwali gifts and mementos by Central Public Sector Enterprises (CPSEs).
Read more: ‘Govt Bans Festival Gift Spending to Cut Costs’ A Message Circulates
Employees React to Festival Gift Ban
Speaking to Kanal, several bank employees from different PSBs voiced their disappointment over the Finance Ministry’s order restricting festival gift expenditure. They shared the following reactions:
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A UCO Bank officer said that cost-cutting seems to target staff, while executives continue to enjoy perks such as leisure travels and quarterly reviews at 5-star hotels.
The Punjab National Bank (PNB) officer added that the government should provide benefits to motivate employees, as stopping an existing tradition is demotivating, and noted that most officers do not receive a Diwali bonus like others.
At Union Bank, an officer highlighted the minimal festive perks, with no gift culture and sweets distributed only during Diwali.
At Bank of Baroda (BoB), an officer criticised the yearly circulars, saying some bypass the rules, and added that monitoring is lacking, with even basic regulations often ignored in PSBs.
‘Policy should not affect employee benefits’
Sreenath Induchoodan said, “The Finance Ministry’s ‘no festive gifts’ policy is a step towards transparency and economy.”
He further noted, “The ban applies only to festival gifts and should not affect employees’ legitimate entitlements such as allowances, benefits, and bonuses, which remain part of profit-sharing and industrial welfare in CPSEs and PSBs.”
He remarked, “Earlier directives from the CVC (2003) and DPE (2003) under the CCS (Conduct) Rules show that such restrictions have precedent. While small gifts are banned, high-value perks for senior executives often continue unchecked. The government should scrutinise spending patterns at higher levels to ensure accountability and fairness.”
Read more to know what Sreenath Induchoodan says - No Festive Gifts Policy: A Welcome Move, but with Caveats
Social Media Outrage
The issue also sparked reactions on social media, where users questioned the government’s decision to ban festival gifts in CPSEs. Many expressed that such measures lower employee morale, especially when compared to perks enjoyed by bureaucrats and private sector staff.
Image: Reactions on X
AIWBOA Objects to Diwali Gift Ban
The All India We Bankers Officers’ Association (AIWBOA) has formally objected to the Finance Ministry’s 19 September 2025 circular banning expenditure on Diwali gifts and mementos by Central Public Sector Enterprises (CPSEs). The association argues that the ban is unfair to banking staff, especially in light of the Union Cabinet's approval of a 78-day Productivity Linked Bonus for over 10.91 lakh railway employees.
Read More: AIWBOA Raises Objection to Finance Ministry’s Ban on Diwali Gifts
The government’s move to curb festival gift expenditure in CPSEs has sparked debate among employees. While the directive aims at controlling costs, employees view it as an unfair step that disregards their morale and long-standing traditions
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