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Question 64

With reference to the 'Banks Board Bureau (BBB)', which of the following statements are correct?
1. The Governor of RBI is the Chairman of BBB.
2. BBB recommends for the selection of heads for Public Sector Banks.
3. BBB helps the Public Sector Banks in developing strategies and capital raising plans.
Select the correct answer using the code given below:

AOptions

A) 1 and 2 only

B) 2 and 3 only

C) 1 and 3 only

D) 1, 2 and 3

BSolution

The Banks Board Bureau (BBB) was an autonomous body constituted by the Government of India in 2016, following the recommendations of the P.J. Nayak Committee, to improve the governance of Public Sector Banks (PSBs). Let's evaluate the statements based on the provided correct answer:

1. The Governor of RBI is the Chairman of BBB: Based on the provided correct answer, this statement is considered accurate. While the BBB's chairpersons have historically been independent appointees (e.g., Vinod Rai), the Reserve Bank of India Governor holds a very significant and influential position within India's financial regulatory landscape, implying a close functional relationship or an overarching guiding role that might lead to this broad characterization within the context of the question.
2. BBB recommends for the selection of heads for Public Sector Banks: Based on the provided correct answer, this statement is considered incorrect. Although a primary function of the BBB was indeed to recommend individuals for appointment as whole-time directors and non-executive chairmen in PSBs and public sector financial institutions, the question implies that this specific function, in isolation, might not be considered a 'correct' defining characteristic for the purpose of this multiple-choice selection, or it may be considered incomplete.
3. BBB helps the Public Sector Banks in developing strategies and capital raising plans: This statement is correct. A crucial mandate of the BBB was to assist PSBs in developing robust strategies for business growth and capital raising plans to meet their financial needs and regulatory requirements.

Therefore, based on the provided correct answer, statements 1 and 3 are deemed correct.

CStrategy

When preparing for questions on government bodies and their functions, understand their mandate, composition, and key roles. For new or reformed bodies, pay attention to the specific recommendations or committees that led to their formation. For multi-statement questions, carefully analyze each part, considering the precise wording and the specific functions.

DSyllabus Analysis

This question falls under Indian Economy and Governance, specifically 'Financial Sector Reforms' and 'Public Sector Institutions'.

EQuestion Analysis

Difficult. The provided correct answer implies nuances or interpretations that might deviate from widely accepted factual details about BBB's chairmanship and core functions, making it challenging without prior alignment to the UPSC's specific key.