UPSC Prelims 2019 Question:

The Chairmen of public sector banks are selected by the

Explanation:

• Banks Board Bureau (BBB) is an autonomous body of the Government of India, set up in 2016 for a period of two years. It was set up to improve governance in public sector banks. Initially, the Government mandated BBB to recommend candidates for the top posts in public sector banks. This role was later expanded to suggest capital raising plans. Now the Bureau will recommend for selection of heads of public sector banks and help banks in developing strategies and capital-raising plans.
  
  
• While the Bureau selects the candidates, the government will make the appointments and also decide on the bank in which each candidate will be posted. The Bureau has three ex-officio members and three expert members in addition to Chairman. Except for ex-officio members, all the Members and Chairman are part time.
  
  

Therefore, option (1) is the correct answer.

Relevance: The Banks Board Bureau (BBB) has selected twenty-two candidates for 19 posts of executive directors in public sector banks (PSBs), in the current fiscal (2018-2019).

Subject: Economics | Money and Banking