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 for the selection of heads for Public Sector Banks.
3. 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

APEDIA

UPSC Prelims

2022 • 05 Jun, 2022 • Paper-1

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 for the selection of heads for Public Sector Banks.
3. BBB helps the Public Sector Banks in developing strategies and capital raising plans.

Select the correct answer using the code given below:

Correct Answer

(b) 2 and 3 only

Leadership Structure: Statement 1 is strictly incorrect. The Banks Board Bureau (BBB) is headed by a Chairman who is exclusively appointed by the Central Govern......

💡 Analysis & Explanation

Leadership Structure ▼

Statement 1 is strictly incorrect. The Banks Board Bureau (BBB) is headed by a Chairman who is exclusively appointed by the Central Government—usually an eminent, seasoned professional from the banking or financial sector—not the Governor of the RBI.

Executive Selection Mandate ▼

Statement 2 is correct. A primary statutory mandate of the BBB is to meticulously evaluate and recommend highly suitable candidates for top executive leadership positions (such as Whole-Time Directors and Chairpersons) across Public Sector Banks and state-run financial institutions.

Strategic Advisory Role ▼

Statement 3 is correct. The BBB was explicitly established to provide strategic, high-level guidance, fundamentally helping PSBs formulate robust business strategies, aggressively improve corporate governance, and devise highly effective capital-raising plans.

Conclusion ▼

Statements 2 and 3 accurately reflect the official mandate of the BBB.

Choose Language

See you soon!