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:
Answer & explanation
Answer: (b) 2 and 3 only
The Banks Board Bureau recommended who should head public sector banks and helped them with strategy and capital-raising plans, so statements 2 and 3 are correct. Its chairman was not the RBI Governor: the first Chairman was Vinod Rai, former CAG, and the RBI was represented only by a Deputy Governor as ex-officio member.
- ✗ 1. The Bureau was chaired by Vinod Rai, a former Comptroller and Auditor General. The RBI's seat was that of a Deputy Governor, an ex-officio member.
- ✓ 2. The Bureau was set up to recommend the selection of heads of public sector banks and financial institutions.
- ✓ 3. It was also mandated to help banks develop strategies and capital-raising plans.
Remember · Banks Board Bureau (from 1 April 2016): recommends PSB heads and helps with strategy and capital raising; Chairman Vinod Rai; RBI Deputy Governor an ex-officio member.
Sources
- PIB, Ministry of Finance, 28 February 2016: Government constitutes Banks Board Bureau ↗ “The Bureau will recommend for selection of heads - Public Sector Banks and Financial Institutions and help Banks in developing strategies and capital raising plans. … Shri Vinod Rai, Former CAG of India, appointed as the Chairman of Banks Board Bureau”
Question and answer: UPSC's official GS Paper I (2022, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·