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 of 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:
This questions was previously asked in
UPSC CSP Previous Year Paper (2022)
1 and 2 only
Incorrect Answer2 and 3 only
Correct Answer1 and 3 only
Incorrect Answer1, 2 and 3
Incorrect AnswerExplanation:
Central Government notified the amendment to the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1980 providing the legal framework for composition and functions of the Banks Board Bureau on March 23, 2016. The Bureau accordingly started functioning from April 01, 2016 as an autonomous recommendatory body.
The board comprises the Chairman, three ex-officio members i.e. Secretary, Department of Public Enterprises, Secretary of the Department of Financial Services and Deputy Governor of the Reserve Bank of India and three expert members. The Governor of RBI is not its chairman. Hence statement 1 is not correct. The Banks Board Bureau is mandated to select and appointment Board members for various financial institutions in public sector like Public sector banks, insurance companies. It is also required to undertake activities in the sphere of governance in these institutions. The functions of the Bureau outlined in the Section 7(C) of the Scheme and in subsequent amendments as per orders of Appointment Committee of the Cabinet are : -
a) To recommend the selection and appointment of Board of Directors in Mandated Institutions (Whole Time Directors and Chairman). Hence statement 2 is correct.
b) To advise the Central Government on matters relating to appointments, confirmation or extension of tenure and termination of services of the Directors of mandated institutions.
c) To advise the Central Government on the desired management structure of mandated institutions, at the level of Board of Directors and senior management.
d) To advise the Central Government on a suitable performance appraisal system for mandated institutions.
e) To build a data bank containing data relating to the performance of mandated institutions and its officers.
f) To advise the Central Government on the formulation and enforcement of a code of conduct and ethics for managerial personnel in mandated institutions.
g) To advise the Central Government on evolving suitable training and development programs for managerial personnel in mandated institutions.
h) To help the banks in terms of developing business strategies and capital raising plan. Hence statement 3 is correct.
i) Any other work assigned by the Government in consultation with Reserve Bank of India
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By: Parvesh Mehta