Important Facts For Prelims
Banks Board Bureau
- 27 May 2020
- 2 min read
Why in News
The Banks Board Bureau (BBB) has selected SN Rajeswari as the Chairman and Managing Director (CMD) of the Delhi-based Oriental Insurance Company (OIC).
- The Ministry of Finance will now start the process of appointing Rajeswari as the CMD of OIC.
- This will be followed by the Finance Ministry's nod and a further approval from the Appointments Committee of the Cabinet and the Prime Minister’s Office.
Key Points
- Background: The Banks Board Bureau (BBB) has its genesis in the recommendations of ‘The Committee to Review Governance of Boards of Banks in India, May 2014 (Chairman - P. J. Nayak)’.
- Formation: The government, in 2016, approved the constitution of the BBB as a body of eminent professionals and officials to make recommendations for appointment of whole-time directors as well as non-executive chairpersons of Public Sector Banks (PSBs) and state-owned financial institutions.
- It is an autonomous recommendatory body.
- The Ministry of Finance takes the final decision on the appointments in consultation with the Prime Minister’s Office.
- Functions:
- Apart from recommending personnel for the PSBs, the Bureau has also been assigned with the task of recommending personnel for appointment as directors in government-owned insurance companies.
- It engages with the board of directors of all the public sector banks to formulate appropriate strategies for their growth and development.
- It is tasked with improving corporate governance at public sector banks, building capacities, etc.
- The Banks Board Bureau is a public authority as defined in the Right to Information Act, 2005.
