The Chairmen of public sector banks are selected by the

Answer: (a) Banks Board Bureau

In 2019 the Banks Board Bureau (BBB) was the body that recommended the selection of heads of public sector banks. The Government set it up as an autonomous body, functioning from 1 April 2016, to improve governance of public sector banks.

• ✓ (a) The Government's announcement of the Bureau said it would recommend for selection of the heads of public sector banks and financial institutions, and help banks with strategy and capital-raising plans.
• ✗ (b) The Reserve Bank of India regulates and supervises banks; it is not the selecting body for public sector bank heads. Its Deputy Governor was only one ex-officio member of the Bureau.
• ✗ (c) The Ministry of Finance owns the banks, but the Bureau was created as an autonomous body so that selection would not rest with the Ministry alone.
• ✗ (d) A bank's own management does not choose its chairman.
• • Since then On 1 July 2022 the Government revamped the Banks Board Bureau into the Financial Services Institutions Bureau (FSIB), which recommends whole-time directors and non-executive chairpersons for financial services institutions (Department of Financial Services).

Remember · Banks Board Bureau (from 1 April 2016) recommended heads of public sector banks; since July 2022 the Financial Services Institutions Bureau has taken over this role.

Question and answer: UPSC's official GS Paper I (2019, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). · Report an error