Schools have also been asked to ensure that sharp items do not make their way into school transport.
The orders come close on the heels of a school boy being murdered in a Gurgaon school.
The Class 2 student was found dead with his throat slit in the school toilet. Police have arrested a school conductor in connection with the case.
District Inspector of Schools Mukesh Kumar Singh told PTI that use of smart phones by drivers and conductors of school vehicles has been banned as many times they are used to show objectionable content to children.
"We have also asked schools to ensure that sharp edged items are not there in school vehicles. This will be ensured by checking both by schools and the department," the DIOS said.
The education department has also asked parents and school to ensure that they do not allow minors to use vehicles to avoid accidents.