Union Government decided to set up a Bank Board Bureau (BBB) to monitor key performance pointers of public sector banks (PSBs). Union Finance Minister Arun Jaitley announced as part of seven-pronged revamp plan for PSBs in Indradhanush (rainbow) plan.
- The Banks Board Bureau will recommend appointment of directors in public sector banks (PSBs) and advise on ways of raising funds and dealing with issues of stressed assets because banks have a requirement for Rs.180,000 crore over the next four years.
- Bank Board Bureau will start the functioning from next financial year means from 1st April 2016 and the selection of its member will start in the next six months.
- It will be six members body with at least 3 former bankers, 2 professionals and secretary, department of financial services representing government.
- The BBB will also be a link between the government and banks and will be engaged with banks to evolve strategies for them.
- It will replace existing system Appointments Board in which appointments for top level jobs at PSBs are made by an appointments committee which led by the Reserve Bank of India (RBI) Governor.
- Its Functions are to give recommendations for appointment of full – time Directors as well as non – Executive Chairman of PSBs.
- The BBB will be a body of ‘eminent’ professionals and shall consist of only one government official.