With reference to the Banks Board Bureau 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 developin

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Q: 64 (IAS/2022)
With reference to the Banks Board Bureau 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 :

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,177,68,20,177,10,38

keywords: 

{'public sector banks': [0, 0, 0, 4], 'banks board bureau': [0, 0, 0, 2], 'chairman': [0, 0, 3, 5], 'bbb': [0, 0, 0, 1], 'rbi': [1, 4, 2, 23], 'governor': [5, 1, 0, 6], 'selection': [0, 0, 0, 1], 'capital': [31, 3, 12, 18], 'heads': [0, 0, 1, 1]}

The Banks Board Bureau (BBB) was set up in 2016 as an autonomous body to improve the governance of Public Sector Banks (PSBs). It replaced the Appointments Board for appointment of Whole Time Directors as well as non-Executive Chairman of PSBs and the board for the appointment of Executive Directors.

The Governor of RBI is not the Chairman of BBB, but the Chairman of BBB is a former Secretary to the Government of India. The BBB is responsible for recommending names for the appointment of heads of PSBs, and it also assists banks in developing strategies to raise capital and improve their functioning.

Hence, statement 1 is incorrect and statements 2 and 3 are correct.

 

Preparing for Future Exams: Learning from the Analysis of Past Questions

Sources:

  • Economic and Political Weekly article titled "Banking Sector Reforms: The Agenda Ahead" by Rajeev Malhotra and Vrajendra Upadhyay.
  • Reserve Bank of India (RBI) website
  • Indian Express article titled "Explained: What is Banks Board Bureau?" by Sandeep Singh

NCERT and reference book chapters:

  • Indian Economy by Ramesh Singh (Chapter 12 - Banking in India)
  • Indian Polity by M. Laxmikanth (Chapter 40 - Public Enterprises)

Related concepts:

  • Role and functions of RBI
  • Public sector banks in India
  • Banking sector reforms in India
  • Non-performing assets (NPAs) and stressed assets
  • Capital raising plans for banks
  • Appointment process for heads of PSBs.

Note: It is important to keep up to date with current developments and changes in the banking sector and the functioning of BBB.