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Banks Board Bureau (BBB)

Topics Covered: Statutory, regulatory and various quasi-judicial bodies.

Banks Board Bureau (BBB):


Context:

The Banks Board Bureau (BBB) may be entrusted with the job to select MDs and DMDs of a proposed ₹1-lakh crore development financial institution (DFI) being set up to accelerate infrastructure financing.

About the proposed DFI:

  • The infrastructure financier, to be called the National Bank for Financing Infrastructure and Development, is to anchor the ambitious National Infrastructure Pipeline (NIP).

About BBB:

It was set up in February 2016 as an autonomous body– based on the recommendations of the RBI-appointed Nayak Committee.

  • It was part of the Indradhanush Plan.
  • It will make recommendations for appointment of whole-time directors as well as non-executive chairpersons of Public Sector Banks (PSBs) and state-owned financial institutions.
  • The Ministry of Finance takes the final decision on the appointments in consultation with the Prime Minister’s Office.

Composition:

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.

InstaLinks:

Prelims Link:

  1. About BBB.
  2. Composition.
  3. Functions.
  4. What was the Nayak Committee appointed for by the RBI?

Mains Link:

Discuss the roles and functions of BBB.

Sources: the Hindu.