DR Ambedkar IAS Academy

Banks Board Bureau

Banks Board Bureau (BBB) is an autonomous advisory body created by the government to enhance the governance of the Public Sector Banks and state-owned financial institutions. The most popular function of the BBB is to recommend the whole-time directors as well as non-executive chairpersons of public sector banks (PSBs) and state-owned financial institutions.

  • The BBB was created after the recommendations of the Committee to Review Governance of Boards of Banks in India (Chairman -PJ Nayak Committee – 2014).
  • The main objective of the creation of BBB was to empower the boards of the Public Sector Banks.
  • It was created in February 2016 and started functioning from April 2016.
  • It is an autonomous recommendatory body.
  • A search Committee including the RBI Governor recommends the names for the appointment of BBB members.
  • The six-member BBB panel has three government officials and three experts, of which two are from the banking sector.

Following are the main functions of the BBB.

  1. Responsible for the selection and appointment of Board of Directors in PSBs and FIs (Whole-time Directors and Non-Executive Chairman);
  2. Advise the Government on matters relating to appointments, confirmation or extension of tenure and termination of services of the Board of Directors of the above-mentioned levels.
  3. To advise the Government on the desired structure at the Board level, and, for senior management personnel, for each PSB and Financial Institution (FI).
  4. To help banks to develop a robust leadership succession plan for critical positions that would arise in future through appropriate HR processes including performance management systems.
  5. To build a data bank containing data relating to the performance of PSBs/FIs and its officers.
  6. To advise the Government on the formulation and enforcement of a code of conduct and ethics for managerial personal in PSBs/Financial Institutions.
  7. To advise the Government on evolving suitable training and development programmes for management personnel in PSBs/FIs; and
  8. To help banks in terms of developing business strategies and capital raising plan etc.
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