Explanation:

Both statements 1&2 are correct.

• The Cabinet Appointments Committee (ACC) has passed a government resolution to establish the Financial Services Institutions Bureau (FSIB) in place of the Banks Board Bureau (BBB).
• The Financial Services Institutions Bureau will select the chiefs of public sector banks and insurance companies. The FSIB will have the clear mandate to issue guidelines and select general managers and directors of state-run non-life insurers, general insurers and Financial Institutions.
• FSIB will be the single entity for making recommendations for appointments of WTD (Whole-time Director) and NEC (Non-executive Chairman) in Public Sector Banks, India Private Limited company and Financial Institutions.
• The FSIB will comprise a chairperson nominated by the central government; the secretaries of the departments of financial services and public enterprises; the chairman of the Insurance Regulatory and Development Authority of India; and a deputy governor of the Reserve Bank of India (RBI). Apart from them, there will be three members with knowledge of banks and other financial institutions, and three more with knowledge of insurance, according to the order.

Hence option 1st is correct.