🧷 Authentic Classroom Explanation by IAS Monk

📌 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 of 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
(c) 1 and 3 only
(d) 1, 2 and 3

✅ Correct Answer: (b)

🧠 Classroom Explanation

• Statement 1 is not correct
  • The Banks Board Bureau (BBB) was set up in 2016 as an autonomous recommendatory body.
  • Its Chairman is not the Governor of RBI.
  • The Bureau consists of:
    • A Chairman
    • Three ex-officio members:
      • Secretary, Department of Financial Services
      • Secretary, Department of Public Enterprises
      • Deputy Governor of RBI
    • Three expert members
  • Hence, Statement 1 is incorrect.
• Statement 2 is correct
  • BBB is mandated to recommend the selection and appointment of Whole-Time Directors and Chairpersons of:
    • Public Sector Banks
    • Public sector financial institutions
    • Insurance companies (as notified)
  • Thus, Statement 2 is correct.
• Statement 3 is correct
  • One of the explicit functions of BBB is to:
    • Help PSBs develop business strategies
    • Assist in capital raising plans
  • This was part of governance reforms to professionalise PSBs.
  • Hence, Statement 3 is correct.

👉 Therefore, only Statements 2 and 3 are correct.

---

🔍 Curiosity Raiser

Why did India create an advisory body like BBB
instead of letting the Government directly appoint PSB heads?

---

🧘 IAS Monk Whisper

Reforms don’t always replace power —
sometimes they quietly discipline it.