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 the selection of a head for Public Sector Banks.
3. BBB helps Public Sector Banks develop strategies and capital-raising plans.

Select the correct answer using the code given below:

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3

Explanation

Statement 1 is incorrect

• Note: In 2021, the Delhi High Court deemed the Bank Board Bureau (BBB) an ineffective authority.
• To resolve this issue, the BBB was dissolved, and a new body, the Financial Services Institutions Bureau (FSIB), was established with the approval of the Appointments Committee of the Cabinet, chaired by the Prime Minister.
• BBB was headed by a chairman, a central government nominee.

Statement 2 is correct

• BBB recommended the selection of a head for Public Sector Banks.

Statement 3 is correct

• The BBB also assisted Public Sector Banks in formulating strategies and capital-raising plans. This includes advising on strategic issues, improving governance, and enhancing the overall performance of PSBs.

Answer: (b) 2 and 3 only; Difficulty Level: Hard