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:

[UPSC Civil Services Exam – 2022 Prelims]

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer: (b)        

Explanation:

Banks Board Bureau

• The Banks Board Bureau is an autonomous body under the Government of India, with a focus on enhancing the governance and board structures of public sector financial institutions.
• The Bureau’s secretariat includes a secretary and four officers.
• Contrary to Statement 1, the Governor of RBI is not necessarily appointed as the chairman of the Bureau; instead, the Central Government can appoint any suitable expert for the role.
• The BBB includes ex-officio members such as the Department of Financial Services Secretary, the Deputy Governor of the Reserve Bank of India, and the Secretary of the Department of Public Enterprises.
• The Bureau is responsible for selecting the heads of public sector banks, as well as devising strategies and plans to raise capital. Statements 2 and 3 are correct.