Banks board bureau: UPSC Daily Imporatant Topic| 11 March 2022

Banks board bureau

∆The Banks Board Bureau (BBB) has its genesis in the recommendations of ‘The Committee to Review Governance of Boards of Banks in India, May 2014 (Chairman – P. J. Nayak)’.

∆Formation: The government, in 2016, approved the constitution of the BBB as a body of eminent professionals and officials to make recommendations for appointment of whole-time directors as well as non-executive chairpersons of Public Sector Banks (PSBs) and state-owned financial institutions.

∆It is an autonomous recommendatory body.

∆The Ministry of Finance takes the final decision on the appointments in consultation with the Prime Minister’s Office.

∆Functions:

✓Apart from recommending personnel for the PSBs, the Bureau has also been assigned with the task of recommending personnel for appointment as directors in government-owned insurance companies.

✓It engages with the board of directors of all the public sector banks to formulate appropriate strategies for their growth and development.

✓It is tasked with improving corporate governance at public sector banks, building capacities, etc.