📈 EconomyUPSC 2019Fundamentals of Economy

The Chairman of public sector banks are selected by the:

aBanks Board Bureau
bReserve Bank of India
cUnion Ministry of Finance
dManagement of concerned bank
✓ Correct answer: a) Banks Board Bureau
ExplanationBanks Board Bureau recomm-ends for selection of heads - Public Sector Banks and Financial Institutions and helps banks in developing strategies and capital raising plans.Bank Board Bureau was established as an indep-endent or- ganisation in February 2016 based on the suggestions of the RBI appointed Nayak Committee.It was part of the Indradhanush Plan.It suggested the selection of full-time directors and non-ex- ecutive chairs for Public Sector Banks (PSBs) and state-owned financial institutions.Note : Now, Financial Services Institutions Bureau (FSIB) was put in place by the Government in place of BBB for recommend- ing candidates for PSBs heads 161

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