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.
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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.
