- Chairman of public sector banks are
selected by Banks Board Bureau but appointed by Finance Ministry. Hence,
statement 1 is not correct.
- Banks Board Bureau is an Autonomous Body
of Government of India. They are committed to improving the Governance and
Boards of public sector financial institutions.
- Banks Board Bureau is an autonomous body
of the Government of India tasked to Search and Select suitable personages
for Board of Public Sector Banks, Public Sector Financial Institutions and
Public Sector Insurance Companies, Board of Directors in Mandated
Institutions (Whole Time Directors and Chairman). Hence, statement 2 is
correct.
- It recommends measures to improve
Corporate Governance in these Institutions. It helps the banks in terms of
developing business strategies and capital raising plan. Hence,
statement 3 is correct.
-
Government
notified the amendment to the Nationalised Banks (Management and Miscellaneous
Provisions) Scheme, 1980 providing the legal framework for composition and
functions of the Banks Board Bureau on March 23, 2016.
-
The
Bureau started functioning from April 2016 as an autonomous recommendatory
body.
-
The
Bureau is mandated to select and appointment Board members for various
financial institutions in public sector like Public sector banks, insurance
companies.
-
It
is also required to undertake activities in the sphere of governance in these
institutions.
The
functions of the Bureau mentioned in the Section 7(C) of the Scheme and in
subsequent amendments as per orders of Appointment Committee of the Cabinet
are:
-
To
recommend the selection and appointment of Board of Directors in Mandated
Institutions (Whole Time Directors and Chairman).
-
To
advise the Central Government on matters relating to appointments, confirmation
or extension of tenure and termination of services of the Directors of mandated
institutions.
-
To
advise the Central Government on the desired management structure of mandated
institutions, at the level of Board of Directors and senior management.
-
To
advise the Central Government on a suitable performance appraisal system for
mandated institutions.
-
To
build a data bank containing data relating to the performance of mandated
institutions and its officers.
-
To
advise the Central Government on the formulation and enforcement of a code of
conduct and ethics for managerial personnel in mandated institutions.
-
To
advise the Central Government on evolving suitable training and development
programs for managerial personnel in mandated institutions.
-
To
help the banks in terms of developing business strategies and capital raising
plan.
-
Any
other work assigned by the Government in consultation with Reserve Bank of
India.