Financial Services Institutions Bureau (FSIB)

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Financial Services Institutions Bureau (FSIB) Blog Image

Overview:

FSIB recently recommended the name of IFCI Managing Director Manoj Mittal as SIDBI Chairman and Managing Director.

About 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 systemforWTDs 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;
    • 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.;
    • To carry out such process and draw up a panel for consideration of competent authority for any other bank, financial institution, or insurer for which the Government makes a reference, after consultation with the regulator concerned with that bank, financial institution, or insurer.

Q1: What is SIDBI (Small Industries Development Bank of India)?

It was established under an Act of Parliament in 1990. It is the Principal Financial Institution engaged in the promotion, financing & development of the Micro, Small and Medium Enterprises (MSMEs) sector and the coordination of the functions of the various institutions engaged in similar activities. It helps MSMEs in acquiring the funds they require to grow, market, develop and commercialize their technologies and innovative products. It was made responsible for administering the Small Industries Development Fund and National Equity Fund.

Source: FSIB selects IFCI MD as SIDBI head, Sanjay Shukla for NHB MD