Question
UPSC Prelims 2022 Question:
With reference to the ‘Banks Board Bureau (BBB), which of the following statements are correct?
- The Governor of RBI is the Chairman of BBB.
- BBB recommends for the selection of heads for Public Sector Banks.
- BBB helps the Public Sector Banks in developing strategies and capital raising plans.
Select the correct answer using the code given below:
Answer (Detailed Solution Below)
Option 2: 2 and 3 only
Detailed Solution
Explanation:
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- 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.
- 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.
- 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.
Therefore, option (2) is the correct answer.
Subject: Economics|Money and Banking
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