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 for 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.
✓ Correct answer: b) 2 and 3 only
ExplanationThe Banks Board Bureau (BBB) was formed on the recommendations of ‘P.J. Nayak Committee to Review Gov- ernance of Boards of Banks.Indian Economy 277Statement 1 is incorrect : The Banks Board Bureau (BBB) was headed by a prominent professional or former senior government official, rather than the Governor of the Re- serve Bank of India (RBI).Notably, its first Chairman was Shri Vinod Rai, who previously served as the Comptroller and Auditor General of India.Statement 2 is correct: Its primary role was to recommend ap- pointments for senior positions in Public Sector Banks (PSBs), Financial Institutions (FIs), and Public Sector Insurance Com- panies.In 2022, the BBB was replaced by the Financial Services Institutions Bureau (FSIB), which continues to carry out similar functions.Statement 3 is correct : The BBB advises PSBs on vario-us strategic matters such as: Business strategies,Capital raising plans,Governance reforms,etc.It also assists banks in addressing issues related to non-performing assets (NPAs) and improving operational efficiency.148
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