Question

Banks Board Bureau (BBB) is an autonomous body of the Government of India tasked to improve the governance of Public Sector Banks. In this context, consider the following statements:

1. It was set up under the government’s Indradhanush program to reform public sector banks.
2. It recommends the selection of chiefs of government-owned banks and financial institutions and to help banks in developing strategies and capital raising plans

Which of the above statements is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer 1

Option C - Both 1 and 2

More Information

■ Banks Board Bureau (BBB) :-

• It is an autonomous body of the Government of India tasked to improve the governance of Public Sector Banks, recommend the selection of chiefs of government-owned banks and financial institutions and to help banks in developing strategies and capital raising plans.

• As part of its mandate, and guided by a spirit of collaboration, the bureau is engaging with various stakeholders. The objective of such engagement is to help prepare the banks to take on the competition, have the ability to appropriately manage and price risk across business cycles, develop resilience to generate internal capital and have the capacity to generate external capital warding of the moral hazard in counting on the scarce budgetary resources of taxpayers.

• The Bureau is also engaging with the Public Sector Banks (PSBs) to help build capacity to attract, retain and nurture both talent and technology - the two key differentiators of business competencies in the days to come.

• In its endeavor, the Bureau is mindful of the need to have a fully empowered board in each and every PSB. While the Bureau is working towards attracting the best personages on the boards, it is these boards that should drive the overall strategy of a bank within its risk capacity and also act as custodians who should reconcile the diverse interests of various stakeholders.

• It was set up under the government’s Indradhanush program.

__________

Answer 2

Banks Board Bureau (BBB) is an autonomous body of the Government of India tasked to improve the governance of Public Sector Banks. In this context, consider the following statements:

1. It was set up under the government’s Indradhanush program to reform public sector banks.

2. It recommends the selection of chiefs of government-owned banks and financial institutions and to help banks in developing strategies and capital raising plans

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2