Banks Board Bureau
Context:
The Banks Board Bureau (BBB) may be entrusted with the job to select MDs and DMDs of a proposed ₹1-lakh crore development financial institution (DFI) being set up to accelerate infrastructure financing.
About:
- Banks Board Bureau (BBB) is an autonomous body of the Government of India.
- Tasked to improve the governance of Public Sector Banks,
- Recommend selection of chiefs of government owned banks and financial institutions and to help banks in developing strategies and capital raising plans.
- In February 2016, the NDA government approved the proposal for setting up BBB
- It started functioning from April 2016.
- The BBB works as step towards governance reforms in Public Sector Banks (PSBs) as recommended by P.J. Nayak Committee.
- Bhanu Pratap Sharma is the new Chairman of the Mumbai based Bureau. It is housed in RBI’s Byculla Office in Mumbai.
- The BBB was the part of Indradhanush Plan of government.
Composition Of Banks Board Bureau
Banks Board Bureau comprises the Chairman, three ex-officio members i.e Secretary, Department of Public Enterprises, Secretary of the Department of Financial Services and Deputy Governor of the Reserve Bank of India, and five expert members, two of which are from the private sector.
Agenda/Functions Of Banks Board Bureau
The broad agenda of the Banks Board Bureau was the administration of state-owned lenders. Its functions involve:
- providing assistance to Public Sector Banks to restructure their business strategies
- Assisting banks with the strategies to deal with issues of bad loans or stressed assets
- Strategies for raising capitals through innovative financial instruments and methods
- Recommendations to the government on top-level appointments like full-time Directors, non-Executive Chairman in PSBs.
- suggest plans for consolidation and merger with other banks while they are trapped in the problem of high collective gross NPAs.
Source: The Hindu
Also check : Indian Banks Association