Question

Q. Consider the following statements regarding the Banks Board Bureau(BBB):

Select the correct answer using the codes given below:

• A. 1 and 2 only
• B. 2 and 3 only
• C. 3 only
• D. 1, 2 and 3

Answer 1

The correct option is A 1 and 2 only

Explanation:

Statement 1 is correct: Banks Board Bureau is a self-governing autonomous body of the Central Government. BBB was a part of the seven-point strategy of the Indradhanush Mission aimed at revamping the Public Sector Banks. The PJ Nayak committee also advised its formation.

Statement 2 is correct: 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 capital 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.

Statement 3 is incorrect: The recommendations are non-binding. They are further taken up by the Ministry of Finance that has the final authority to make any decision (with PM’s consultation).