Banks Board Bureau

Financial Service Institution Bureau
Agency overview
FormedApril 1, 2016 (2016-04-01)
JurisdictionGovt of India
Agency executive
Parent departmentMinistry of Finance
Websitehttps://banksboardbureau.org.in/

Banks Board Bureau (BBB) (now replaced by Financial Services Institution Bureau since 2022) was an autonomous body of the Government of India[1] tasked to search and select appropriate personages for the Board of Public Sector Banks, Public Sector Financial Institutions, and Public Sector Insurance Companies and recommend measures to improve Corporate Governance in these Institutions. In 2022, it was replaced by Financial Services Institutions Bureau(FSIB) with chairman and mandate remaining the same, in response to a Delhi High court order rendering BBB as incompetent.[2]

Overview

The mandate of the Bureau includes:

  • To recommend the selection and appointment of Board of Directors in Nationalised Banks, Financial Institutions and Public Sector Insurance Companies (Whole Time Directors and chairman);
  • To advise the Central Government on matters relating to appointments, confirmation or extension of tenure and termination of services of the Directors of mandated institutions;
  • To advise the Central Government on the desired management structure of mandated institutions, at the level of Board of Directors and senior management;
  • To advise the Central Government on a suitable performance appraisal system for mandated institutions;
  • To build a data bank containing data relating to the performance of mandated institutions and their officers;
  • To advise the Central Government on formulating and enforcing a code of conduct and ethics for managerial personnel in mandated institutions.
  • To advise the Central Government on evolving suitable training and development programs for managerial personnel in mandated institutions
  • To help the banks in terms of developing business strategies and capital raising plans and the like;
  • Any other work the Government assigns in consultation with the Reserve Bank of India.

The Central Government notified the amendment to the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1980 providing the legal framework for the composition and functions of the Banks Board Bureau on March 23, 2016. The Bureau started functioning as an autonomous recommendatory body on April 1, 2016.[3]

The BBB works as a step towards governance reforms in Public Sector Banks (PSBs) as recommended by the P.J. Nayak Committee.[4]It is housed in RBI's Byculla Office in Mumbai.

List of Chairperson

Chairperson
Name Tenure Began Tenure end
Vinod Rai 2016 2018
Bhanu Pratap Sharma 2018 Incumbent

See also

  • List of financial regulatory authorities by jurisdiction

References

  1. ^ "Government constitutes Banks Board Bureau (BBB) to Improve The Governance of Public Sector Banks: Shri Vinod Rai, Former Comptroller and Auditor General of India (CAG), appointed as the Chairman of Banks Board Bureau". Pib.nic.in. 1 April 2016. Retrieved 3 September 2016.
  2. ^ Karthik, Hamsini (18 July 2022). "From Banks Board Bureau to Financial Services Institutions Bureau". BusinessLine. Retrieved 14 March 2024.
  3. ^ "Vinod Rai appointed first Chairman of Banks Board Bureau". The Economic Times. 29 February 2016. Retrieved 31 March 2018.
  4. ^ Busvine, Douglas (24 May 2016). "Interview: Banks Board Bureau chief says it's time for mergers". In.reuters.com. Archived from the original on 25 May 2016. Retrieved 3 September 2016.

Official website


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