With reference to 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 to 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: The Banks Board Bureau (BBB) is headed by a Chairman appointed by the Central Government. The Governor of the Reserve Bank of India (RBI) is not the Chairman of the BBB.

Statement 2 is correct: One of the primary mandates of the BBB was to recommend candidates for the selection of heads (Whole-time Directors and Non-Executive Chairpersons) for Public Sector Banks (PSBs), state-owned financial institutions, and public sector insurers.

Statement 3 is correct: The BBB was also tasked with assisting Public Sector Banks in developing business strategies, capital raising plans, and improving their corporate governance and organizational structure.

Note: In 2022, the Government of India replaced the Banks Board Bureau (BBB) with the Financial Services Institutions Bureau (FSIB), which now carries out these functions.

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