All about BBB (Bank Board Bureau)
- Government took the first step towards a holding company's framework for public sector banks (PSBs), the government announced to set up a bank's Bureau of Bankers (BBBs), where every bank will be monitored on the basis of the "Key Performance Index".
- The bank's Bureau will recommend the advice of the Public Sector Banks (PSBs) for the appointment of directors and the means of fund raising and significant asset problems.
- The heads of the Bureau will recommend elections - Financial Institutions and Development Strategies, Public Sector Banks and Capital Planning Scheme will help the Bank.
- BBB is an autonomous body of the Government of India, which is managed to improve the governance of public sector banks, the selection of heads of government-owned banks and financial institutions and the development of banks and plans for capital raising.
- In August 2015, the central government announced the establishment of the Board of Bureaucracy (BBB) by the central government.
- BBB will start operate on 1st April, 2016.
Members & Chairman of Bank Board Bureau:
- Shri Vinod Rai – Chairman
- Deputy Governor (Reserve Bank of India) – Ex-officio member
- Ms. Rupa Kudwa – Member
- Secretary (Department Financial Services) – Ex-officio member
- Shri H.N. Sinor – Member
- Secretary (Department of Public Enterprises) – Ex-officio member
- Shri Anil K. Khandelwal – Member
Composition of Bank Board Bureau:
BBB will be a 'distinguished' professional agency and will only consist of an official. It can be a member of six members, at least three former bankers, two professional and secretaries, the government representing the financial services department.
Facts about Bank Board Bureau:
- From 1st April the Bank's Bureau of Business (BBB) will start the next fiscal year and its member will start in the next six months after the election.
- It will replace the current manager's recruitment board, whereby a recruitment committee headed by the Reserve Bank of India (Reserve Bank of India) governs the appointment of PSB to the top-level job.
Functions of Bank Board Bureau:
- In addition to appointing a full time director, the recommendation of appointment of PSB's non-executive chairman.
- Merge and single bank guidelines.
- Suggest PSBs to develop strategies to tackle fundraising problems and important resources for innovative financial methods and instruments.
- Bureau banks will help in developing plans for capitalization through various strategies and new financial methods and instruments. It builds credibility, it starts to see the strategies of various banks and can guide the banks if needed. BBB will also be a link between the government and the banks, and will work together with the developing banks for them. This government is trying to make professional through the management of public sector banks.