UPSC Prelims 2022 Question:

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:

Learn more about the Bank Board Bureau in the given explanation below.

Explanation:

• The Governor of RBI is not the Chairman of the Bank Board Bureau (BBB). The Appointments Committee of the Cabinet in its discretion appoints the Chairman and members of the BBB. So, statement 1 is not correct.
• The BBB advises the Government on matters relating to appointments, confirmation or extension of tenure and termination of services of the Board of Directors in Public Sector Banks (PSBs) and financial institutions (FIs). It is responsible for the selection and appointment of Board of Directors of PSBs and FIs. So, statement 2 is correct.
• One of the functions of the BBB is to help Public Sector Banks in terms of developing business strategies and capital raising plan etc. So, statement 3 is correct.
  
  

Functions of Bank Board Bureau

• Recommends personnel for appointment as directors in government-owned insurance companies, in addition to public sector banks.
• Formulates appropriate growth and development strategies for public sector banks in collaboration with their boards of directors.
• Improves corporate governance and builds capacities at public sector banks.
• Is a public authority as defined in the Right to Information Act, 2005.
  
  

Therefore, option (2) is the correct answer.