With reference of the ‘Banks Board Bureau (BBB)’, which of the following statements are correct? 1. The Governor of RBI is the Chairman of BBB. 2. BBB recommends for the selection of heads for Public Sector Banks. 3. BBB helps the Public Sector Banks in Developing strategies and capital raising plans. Select the correct answer using the code given below:

QUESTION

Medium

Economy

Prelims 2022

With reference of the ‘Banks Board Bureau (BBB)’, which of the following statements are correct?

The Governor of RBI is the Chairman of BBB.
BBB recommends for the selection of heads for Public Sector Banks.
BBB helps the Public Sector Banks in Developing strategies and capital raising plans.

Select the correct answer using the code given below:

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Explanation

Statement 1 is incorrect: BBB was set up in February 2016 as an autonomous body based on the recommendations of the RBI-appointed Nayak Committee. It was part of the Indradhanush Plan aimed at revamping public sector banks (PSBs). The Ministry of Finance takes the final decision on the appointments in consultation with the Prime Minister's Office.

Statement 2 is correct: It makes recommendations for the appointment of whole-time directors as well as non-executive chairpersons of Public Sector Banks (PSBs) and state-owned financial institutions.

Statement 3 is correct: Assisting banks with the strategies to deal with issues of bad loans or stressed assets is the agenda of BBB.

Note: The Banks Board Bureau (BBB) was abolished and replaced by the Financial Services Institutions Bureau (FSIB) in 2022. The FSIB is an autonomous body of the Government of India.

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