With reference to the 'Banks Board Bureau (BBB)', which of the followi

With reference to the ‘Banks Board Bureau (BBB)’, which of the following statements are correct ?

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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 :

1 and 2 only

2 and 3 only

1 and 3 only

1, 2 and 3

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2022

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Statement 1 is incorrect: The Governor of RBI is not the Chairman of the Banks Board Bureau (BBB). The BBB was chaired by a distinguished former banker or bureaucrat. (Note: BBB has since been replaced by the Financial Services Institutions Bureau – FSIB, also chaired by someone other than the RBI Governor). Statement 2 is correct: One of the key functions of the BBB was to recommend personnel for appointment as whole-time directors and non-executive chairpersons in Public Sector Banks (PSBs). Statement 3 is correct: BBB was also tasked with advising PSBs on strategies for growth and development, including capital raising plans and ways to address stress in the banking system.

The Banks Board Bureau (now FSIB) was established to improve the governance of Public Sector Banks and recommend appointments for their top management.

The BBB was an autonomous body set up by the Government of India in 2016 as part of the Indradhanush plan for reforming PSBs. It replaced the Appointments Board for PSBs. In July 2022, the FSIB was constituted in place of BBB to recommend full-time directors and non-executive chairpersons for public sector financial institutions including PSBs and public sector insurers.

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