Q. 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 head 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:
a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2 and 3
Correct Answer: b) 2 and 3 only
Question from UPSC Prelims 2022 GS Paper
Explanation :
Banks Board Bureau (BBB)
The Banks Board Bureau (BBB) is an autonomous body of the Government of India tasked with improving the governance of Public Sector Banks (PSBs), insurance companies, and financial institutions. Let’s analyze the provided statements.
Analysis of Statements
Statement 1: The statement is incorrect. The Governor of the Reserve Bank of India is not the Chairman of the BBB. The Chairman of the BBB is typically a person with extensive experience in the banking or financial sector, appointed by the Government of India.
Statement 2: This statement is correct. One of the primary functions of the BBB is to recommend candidates for the top management positions, including the Managing Directors and CEOs, of Public Sector Banks and financial institutions. The recommendations made by the BBB are based on merit and suitability for the positions.
Statement 3: This statement is correct. The BBB also helps Public Sector Banks in developing strategies and capital raising plans. It provides guidance on mergers and consolidations and helps banks in their efforts to deal with the issues of stressed assets, which are a significant concern for the banking sector.
Therefore, the correct answer is: Statements 2 and 3 only.
