With reference to the ‘Banks Board Bureau (BBB), which of the following statements are correct?

The Governor of RBI is the Chairman of BBB.
BBB recommends for the selection of heads for Public Sector Banks.
BBB helps the Public Sector Banks in developing strategies and capital raising plans.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

Explanation

Here is a detailed explanation of each option:

Option 1: The Governor of RBI is not the Chairman of BBB. The Chairman of BBB is appointed by the Central Government.
Option 2: BBB recommends for the selection of heads for Public Sector Banks. This is one of the primary functions of BBB. BBB recommends candidates for the position of non-executive chairman and whole-time directors of public sector banks to the Central Government.
Option 3: BBB helps the Public Sector Banks in developing strategies and capital raising plans. This is another important function of BBB. BBB helps PSBs to develop business strategies, deal with stressed assets, and raise capital.

Therefore, the correct answer is (b) 2 and 3 only.

Learn more about the Banks Board Bureau (BBB)

The Banks Board Bureau (BBB) is an autonomous body established by the Government of India in 2016 to improve the governance of public sector banks (PSBs). The BBB is an advisory body that recommends candidates for the position of non-executive chairman and whole-time directors of PSBs to the Central Government. The BBB also helps PSBs to develop business strategies, deal with stressed assets, and raise capital.

The BBB is composed of eminent professionals from the banking, financial services, and industry sectors. The Chairman of the BBB is appointed by the Central Government.

The BBB has played a significant role in improving the governance of PSBs. Since its inception, the BBB has recommended candidates for the position of non-executive chairman and whole-time directors of PSBs. The BBB has also helped PSBs to develop business strategies, deal with stressed assets, and raise capital.

The BBB is a key institution in the Government of India’s efforts to reform the PSB sector. The BBB has played a significant role in improving the governance of PSBs and making them more competitive.