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Q64·GS Paper 1 · Prelims 2022

Structure and functions of the Banks Board Bureau

EconomyBanking & RBIStatement-basedMediumStatic

Question

With reference to the 'Banks Board Bureau (BBB)', which of the following statements are correct? Select the correct answer using the code given below:

  1. 1.

    The Governor of RBI is the Chairman of BBB.

  2. 2.

    BBB recommends for the selection of heads for Public Sector Banks.

  3. 3.

    BBB helps the Public Sector Banks in developing strategies and capital raising plans.

Options

a

1 and 2 only

b

2 and 3 only

Answer
c

1 and 3 only

d

1, 2 and 3

Explanation

Statements 2 and 3 are correct. The BBB was explicitly created to recommend the selection of top executives (MDs and CEOs) for Public Sector Banks and to assist them with governance strategies and capital-raising plans. Statement 1 is incorrect; the Chairman of the BBB is appointed by the Central Government and is traditionally an eminent professional, not the RBI Governor.

The Banks Board Bureau (now transformed into the Financial Services Institutions Bureau - FSIB) was designed as an independent advisory body to insulate public bank appointments from direct political and RBI interference.

Answer: (b).

Question details

Year

2022

Paper

GS Paper 1

Question

Q64

Subject

Economy

Sub-topic

Banking & RBI

Type

Statement-based

Difficulty

Medium

Nature

Static

Source hint

PJ Nayak Committee / Banks Board Bureau Governance Charter

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