Explanation:

Second option is correct.

P. J. Nayak committee was constituted by RBI, to review the Governance of Boards of Banks in India, has submitted its report.

P J Nayak Committee Objectives

1. To review the regulatory compliance requirements of boards of banks in the country to evaluate what can be rationalised and where requirements need to be enhanced.
2. To examine the workings of the boards of banks including if sufficient time is given to strategy issues, governance, growth and risk management.
3. To review RBI regulatory guidelines on bank ownership, ownership concentration and board concentration.
4. To study the compensation of the board.
5. To study the representation in the banks’ board, to check if the boards have the required mix of capabilities and the required independence to govern, and to inquire into possible conflict of interest in board representation.
6. To study any other issues pertinent to the functioning and governance of the boards of banks.