BANK BOARD BUREAU, Financial Services Institutions Bureau

 

BANK BOARD BUREAU (BBB)— 

• As part of a seven-pronged revamp plan for PSBs - Indradhanush, Bank Board Bureau (BBB) was set up  in 2016 to monitor key performance indicators of Public Sector Banks. 
• It replaced existing system Appointments Board in which appointments for top level jobs at PSBs were made by an appointments committee led by the RBI Governor. 
• BBB was supposed to give recommendations for appointment of full-time Directors as well as non-Executive Chairman of PSBs, 
• BBB was established to give advice to PSBs in developing differentiated strategies for raising funds through innovative financial methods and instruments and to deal with issues of stressed assets,
• It was supposed to guide banks on Mergers and Consolidations.

                                                                      vs 

Financial Services Institutions Bureau (FSIB): 

• The BBB was declared an incompetent authority in 2022 by the Delhi High Court, when a General Manager at state-owned National Insurance Company challenged the appointment of a person junior to him for Director’s position by the BBB.
• FSIB replaced BBB as Delhi High Court invalidated the appointment done by BBB in 2021.
• FSIB is an autonomous Government body set up under the Department of Financial Services entrusted with making recommendations for the appointment of full-time directors and non-executive chairman of state-run financial services institutions like Public Sector Bank, Public financial institution and Public Sector Insurers. 
• FSIB would also issue guidelines for selecting general managers and directors of public sector general insurance companies.