[Solved] With Reference of ‘ Bank Boards Bureau BBB”. Which of the following statements are correct? The Governor of RBI is a Chairman of BBB. BBB Recommends for the Selection of heads of Public Sector Banks. BBB helps Public Sector Banks in developing Strategaries ans Capital raising Plans. Select the correct answer using the code given Below

Q64) With Reference of ‘ Bank Boards Bureau BBB”. Which of the following statements are correct?

1. The Governor of RBI is a Chairman of BBB.
2. BBB Recommends for the Selection of heads of Public Sector Banks.
3. BBB helps Public Sector Banks in developing Strategaries ans Capital raising Plans.

Select the correct answer using the code given Below

1. 1 and 2 Only
2. 2 and 3 Only
3. 1 and 3 Only
4. 1,2 and 3

Answer: 2

• The Government of India’s Banking Board Bureau is an autonomous body. On March 23, 2016, the Central Government notified the Nationalized Banks (Management and Miscellaneous Provisions) Scheme, 1980, revision, giving the legal basis for the makeup and responsibilities of the Banks Board Bureau. As a result, the Bureau began operating on April 1, 2016, as an independent recommendatory agency.
• It was not mandated that the Governor of RBI will be the chairman of the Bank Board Bureau (BBB).
• It was empowered to select the heads of Public sector Banks.
• The BBB was declared an incompetent authority by the Delhi High Court, when a general manager at state-owned National Insurance Company challenged the appointment of a person junior to him for Director’s position by the BBB. Consequent to the order, 10–11 directors appointed by the BBB had to vacate office.
• To end this logjam, the BBB had to be struck down and a new body, namely, FSIB had to be put in place vide approval from the Appointments Committee of the Cabinet, headed by the prime minister.

Financial Services Institutions Bureau (FSIB)

• It’s a government body set up under the Department of Financial Services (DFS), Ministry of Finance.
• The primary role of FSIB is to identify manpower capabilities and ensure proper selection of talent for senior positions at financial institutions owned by the government.
• It replaced the Bank Board’s Bureau (BBB), which was declared an incompetent authority.

Structure:

• FSIB would be headed by a chairman, a central government nominee.
• The board would comprise the Secretaries of the DFS, the chairman of IRDAI, and a deputy governor of the RBI.
• Additionally, it will have three part-time members who are experts in banking and three more from the insurance sector.

Functions:

• To recommend persons for appointment as whole-time directors (WTDs) and non-executive chairpersons (NECs) on the Boards of Directorsin Public Sector Banks (PSBs), financial institutions (FIs) and Public Sector Insurers (PSIs).
• To advise the Government on matters relating to appointments, transfers or extension of term of office and termination of the services of the said directors;
• It would also issue guidelines for selecting general managers and directors of public sector general insurance companies.
• The final decision on the FSIB recommendation would be taken by the Appointments Committee of the Cabinet, headed by the Prime Minister.
• To advise the Government on the desired management structure at the Board level for PSBs, FIs and PSIs;
• To advise the Government on a suitable performance appraisal system for WTDs and NECs in PSBs, FIs, and PSIs;
• To build a databank containing data related to the performance of PSBs, FIs and PSIs;
• To advise the Government on the formulation and enforcement of a code of conduct and ethics for WTDs in PSBs, FIs, and PSIs;

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