Structure and functions of the Banks Board Bureau
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.
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.
Options
1 and 2 only
2 and 3 only
1 and 3 only
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.
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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