Banks Board Bureau [BBB] - UPSC Economics Notes

Banks Board Bureau (BBB) is a self-governing autonomous organization of the central government that was established in 2016 to reform public sector banks. This authority was replaced by the Financial Services Institutions Bureau (FSIB) in 2022. Banks Board Bureau consisted of eminent professionals that reformed public sector banks.

Realizing the urgent need to reform public sector banks in India, the government formed the BBB. Learn more about Banks Board Bureau, its origin, significance, chairman, members, etc., here.

About Banks Board Bureau

The Reserve Bank of India set up the Banks Board Bureau (BBB) on 1 April 2016. The aim of BBB, a self-governing organization, was to reform banking, particularly revamping the public sector banks. The Banks Board Bureau is headquartered at the Central Offices of the Reserve Bank of India, Mumbai. Find out more about the BBB from the overview shared below.

Banks Board Bureau Functions

The BBB is an advisory authority that carries out a number of functions to ensure that the banking sector is reforming. Some of the main Banks Board Bureau functions are as follows.

• Assist banks by providing them with strategies to deal with issues like stressed assets or bad loans.
• The BBB assists the PSBs in restructuring their business strategies.
• Suggest plans for consolidation and mergers with other banks as a solution to the problem of high collective gross NPAs.
• The Banks Board Bureau also develops strategies for raising capital through advanced and innovative financial instruments.
• It constructs a data bank containing data regarding the performance of nationalized banks and their officials.
• BBB recommends the Central Government on topics relating to appointments, termination, confirmation, or extension of tenure of services of nationalized banks.
• The Banks Board Bureau advises the Central Government to modify suitable training and development programs for managers or executives in nationalized banks.
• The BBB advises the Central Government to formulate and implement a code of conduct and ethics for managers or executives in a nationalized bank.

Banks Board Bureau Composition

The Banks Board Bureau is involved in a number of functions to reform Public Sector Banks, state-owned financial institutions, and public sector insurance companies. Its extensive functions require an expert team. The official members of the Banks Board Bureau are as follows.

• Chairman of BBB
• Three Ex-Officio Members, including the Secretary of the Department of Financial Services, the Secretary of the Department of Public Enterprises, and the Deputy Governor of the Reserve Bank of India.
• Five expert members, including two from the private sector

Chairman of the Banks Board Bureau

Bhanu Pratap Sharma is the chairman of the Banks Board Bureau. The chairman is the highest authority in the organization. He overlooks the functions of the bureau and attends meetings and other important discussions related to the bureau’s functions and visions. Bhanu Pratap Sharma was appointed as the Banks Board Bureau Chairman in 2018.

Members of the Banks Board Bureau

Currently, there are seven members from public banks in the Banks Board Bureau. They are as follows:

• Bhanu Pratap Sharma - Chairman
• Debasish Panda - Secretary
• Sailesh and N.S. Vishwanathan - Ex-Officio Members
• Vedika Bhandarkar, Pradip Panala Shah, and Panja Pradeep Kumar - Part-Time Members

Banks Board Bureau: Current Status

BBB is a not-for-profit self-governing body of the Central Government. The PJ Nayak Committee, which was set up in January 2014, manages the Banks Board Bureau. BBB was also a part of the Indradhanush Plan. The Banks Board Bureau has an agenda for creating and implementing suitable strategies to reform the banking sector in India.

It overlooks the appointments, termination, and extension of the members of the Board in PSBs, state-owned financial institutions, and public sector insurance companies. The Banks Board Bureau is a not-for-profit body as it receives expenses from the Reserve Bank of India.

Which Organization Replaced Banks Board Bureau?

In 2022, Banks Board Bureau was replaced by the Financial Services Institutions Bureau (FSIB), a new self-governing authority. FSIB was established by the central government under the Department of Financial Services. This new authority took over the functions of the Banks Board Bureau in 2022.

• The FSIB seeks to promote excellence in all public sector financial institutions in India.
• The role of FSIB was effective from 1 July 2022, after it replaced the Banks Board Bureau.
• The previous Chairman of the Banks Board Bureau, Bhanu Pratap Sharma, is continuing as the Chairman of FSIB.

FAQs on Banks Board Bureau

Q1. What is Banks Board Bureau?

The Banks Board Bureau (BBB) is an autonomous body that was established by the government of India to reform the banking sector. The BBB creates and implements suitable strategies for appointments, termination, and extension of the members of the Board in Public Sector Banks.

Q2. Who is the chairman of the Banks Board Bureau?

Bhanu Pratap Sharma is the Chairman of the Banks Board Bureau (BBB). The BBB is a self-governing body that advises the public sector financial institutions in India to appoint or exterminate members to promote growth and development.

Q3. Where is the Banks Board Bureau headquarters?

The Banks Board Bureau (BBB) headquarters is located at the Central Offices of the Reserve Bank of India, Mumbai. The BBB is responsible for regulating and reforming the banking sector in India. The Banks Board Bureau was established by the central government in 2016.

Q4. Which institution replaced Banks Board Bureau?

The Financial Services Institutions Bureau (FSIB) replaced the Banks Board Bureau (BBB) in 2022. FSIB is a government agency that the central government introduced under the Department of Financial Services in 2022. It looks over the functions that the BBB once performed.

Q5. Who established the Banks Board Bureau and when?

The Reserve Bank of India set up and established the Banks Board Bureau (BBB) on 1 April 2016. Establishing BBB was a big step towards banking reform, particularly, in revamping the public sector banks.