The Chairman of public sector banks are selected by the
- Banks Board Bureau
- Reserve Bank of India
- Union Ministry of Finance
- Management of concerned bank
Explanation
Option (a) is correct
- The Banks Board Bureau was established in 2016 for recommending the appointment and selection of the Board of Directors of public sector banks, public sector insurance companies, and public sector financial institutions. The BBB was conceived by the PJ Nayak committee and was seen as a step taken towards reforming the boards of public sector banks.
- Note: As per the new framework of the Ministry of Finance, the BBB has been replaced with the Financial Services Institutions Bureau (FSIB).
- FSIB has been constituted effective from July 01, 2022, by the Central Government for the purpose of recommending persons for appointment as whole-time directors and non-executive chairpersons on the Boards of financial services institutions and for advising on certain other matters relating to personnel management in these institutions. It is also involved in formulating and developing business strategies for state-run banks and helps them in their fundraising plans.
