Government announces Banks Board Bureau to advise Public Sector Banks

Date: August 16, 2015

BBB PSBs RBI

Bank Board Bureau:Guide banks on mergers and consolidations

Union Government has decided to set up a Bank Board Bureau (BBB) to monitor key performance indicators of public sector banks (PSBs).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.

Taking the first step towards a holding company structure for public sector banks (PSBs), the government on Friday announced the setting up of a Banks Board Bureau (BBB).
It will recommend appointment of directors in PSBs and advise on ways of raising funds and dealing with issues of stressed assets.

pBank Board Bureau (BBB) will start the functioning from next financial year i.e. from 1st April 2015 and the selection of its member will start in the next six months. It will replace existing system Appointments Board in which appointments for top level jobs at PSBs are made by an appointments committee led by the Reserve Bank of India (RBI) Governor.

The BBB will be a body of ’eminent’ professionals and shall consist of only one government official. It will be six members body with at least 3 former bankers, 2 professionals and secretary, department of financial services representing government.