73

Question 73

The Chairmen of public sector banks are selected by the

AOptions

A
A) Banks Board Bureau
B
B) Reserve Bank of India
C
C) Union Ministry of Finance
D
D) Management of concerned bank

BSolution

The Banks Board Bureau (BBB) was established by the Government of India in 2016 as an autonomous body. Its primary mandate is to improve the governance of Public Sector Banks (PSBs) and other Public Sector Financial Institutions. One of the key functions of the Banks Board Bureau is to recommend persons for appointment as whole-time directors (including Managing Directors and Chief Executive Officers) and non-executive Chairmen of Public Sector Banks. It also advises on strategies for their growth and development. Prior to BBB, these appointments were handled by a committee of the Finance Ministry.

Diagram for Q73

CStrategy

For questions on the appointments or governance of public sector entities, identify the specific body or mechanism responsible for such functions. Understand the roles of different institutions (e.g., RBI, Ministry, dedicated bureaus) in the governance structure.

DSyllabus Analysis

This question falls under the Indian Economy and Governance sections of the UPSC Prelims syllabus, specifically focusing on the banking sector, financial sector reforms, and institutional governance.

EQuestion Analysis

Easy. This is a direct factual question about the Banks Board Bureau, a significant reform in PSB governance.