Financial Services Institutions Bureau

Financial Services Institutions Bureau  Latest News

Recently, the government reconstituted the Financial Services Institutions Bureau.

About Financial Services Institutions Bureau    

• It is an autonomous body of the Government of India set up under the Department of Financial Services (DFS), Ministry of Finance.
• It replaced the erstwhile Banks Board Bureau (BBB) in July 2022.
• Structure: 
  • FSIB is headed by a chairman, a central government nominee. 
  • The board comprises 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. 

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Functions of Financial Services Institutions Bureau

• To recommend persons for appointment as whole-time directors (WTDs) and non-executive chairpersons (NECs) on the Boards of Directors in Public Sector Banks, financial institutions and Public Sector Insurers
• To advise the Government on matters relating to appointments, transfer or extension of term of office and termination of services of the said directors;
• 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 advise the Government on formulation and enforcement of a code of conduct and ethics for whole-time directors in PSBs, FIs and PSIs;
• To advise the Government on evolving suitable training and development programmes for management personnel in PSBs, FIs and PSIs;
• To help PSBs, FIs and PSIs in terms of developing business strategies and capital raising plan etc.

Source: BL