This article is on the BBB – Banks Board Bureau. You will know about BBB, composition, and function of the Banks Board bureau in the article.
Information on BBB is important in terms of the general awareness section of the UPSC exam, Bank, RRB, SSC, and other Government exams.
What is BBB?
BBB is a self-governing autonomous body of the Central Government. It is an advisory authority comprising eminent professionals and officials to improve the management of Public sector banks.
Banks Board Bureau headquarter is at the Central Office of Reserve Bank of India Mumbai and started its functioning on April 1, 2016.
BBB was a part of the seven-point strategy of the Indradhanush Mission aimed at revamping the Public Sector Banks. It is an autonomous body of officials and distinguished professionals for the PSBs (Public Sector Banks).
Agenda/Functions Of BBB
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.
Composition Of BBB
Based on the recommendations of the Nayak committee appointed by RBI, the Union Government in order to revamp PSBs announced BBB in August 2015 as part of seven points Indradhanush Mission to revamp PSBs. Based in Mumbai, Maharashtra the first Banks Board Bureau was set up in February 2016 under the chairmanship of former Comptroller & Auditor General Vinod Rai.
Banks Board Bureau was a replacement to the preceding Appointments Board of the Government. The aim of establishing BBB was to presage a new era of authority and business strategies for state-owned banks that could place them comparable with the relatively privileged private sector peers.
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.
Facts related to BBB:
- The BBB started to function in April 2016 and was set up for a period of two years.
- Vinod Rai was the first chairman of Banks Board Bureau appointed for a two-year term
- Bhanu Pratap Sharma, former DoPT is the current chairman of Banks Board Bureau.
- Recently, BBB has recommended names for the post of MD and CEO for three state-owned banks namely Bank of India, Bank of Baroda and Canara bank.
- Banks Board Bureau was the part of Indradhanush Mission of the NDA Government.
Candidates preparing for UPSC 2020 or any other competitive exam must refer the important links provided below: