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 :
- (a) 1 and 2 only
- (b) 2 and 3 only ✓ UPSC's answer
- (c) 1 and 3 only
- (d) 1, 2 and 3
Why the answer is (b)
• The Banks Board Bureau was set up in 2016 on the recommendation of the P.J. Nayak Committee to improve governance of public-sector banks; in 2022 it was replaced by the Financial Services Institutions Bureau.
• Statement 2 is correct: it recommended candidates for the posts of whole-time directors and heads (MD & CEO) of public-sector banks and financial institutions.
• Statement 3 is correct: it was also mandated to help PSBs develop business strategies and capital-raising plans.
• Statement 1 is wrong: the BBB was chaired by a former CAG (Vinod Rai) and later a former secretary, not the RBI Governor; an RBI Deputy Governor was only a member.
• Hence 2 and 3 only, option (b).
Why the other options are wrong
- (a) 1 and 2 only
- Statement 1 is wrong: the RBI Governor did not chair the BBB.
- (c) 1 and 3 only
- Statement 1 is wrong; statement 3 is correct.
- (d) 1, 2 and 3
- Statement 1 is wrong, so all three cannot be correct.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2022, held on 5 June 2022. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.