CPSEs Current Affairs

Align pay in PSBs to that in CPSEs: BBB

The Bank Board Bureau (BBB) has recommended that Government should bring in reforms in the compensation process in public sector banks (PSBs) on the lines of Central Public Sector Enterprises (CPSEs).

BBB has suggested compensation reforms in PSBs so that best practices can be introduced ‘on the lines already prevalent in CPSEs.

It will play important role in attracting high-quality talent for non-executive directors and chairmen.  It will also maintain a level-playing field with the private sector with respect to role, responsibility and remuneration.

About Bank Board Bureau (BBB)
  • BBB is the super authority (autonomous body) of eminent professionals and officials for public sector banks (PSBs). It had replaced the Appointments Board of Government.
  • It is set up in April 2016 as part of seven point Indradhanush Mission to revamp the Public Sector Banks (PSBs).
  • Functions: Give recommendations to Government for appointment of full-time Directors as well as non-Executive Chairman of PSBs.
  • Give advice to PSBs in developing strategies for raising funds through innovative financial methods and instruments to deal with stressed assets.
  • Guide banks on mergers and consolidations and also ways to address the bad loans problem and among other issues.
  • Composition of BBB: It has three ex-officio members and three expert members, in addition to the Chairman. Former Comptroller and Auditor General (CAG) Vinod Rai is first and incumbent Chairman of BBB.

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Former Cabinet secretary Ajit Kumar Seth appointed as the Chairman of PESB

Former Cabinet secretary Ajit Kumar Seth has been appointed as the Chairman of the government’s head-hunter, Public Enterprises Selection Board (PESB) on 14 August 2015.

As per the order issued by Department of Personnel and Training (DoPT) Ajit Kumar will head PESB by replacing Atul Chaturvedi for period of three years or till he attains 65 years of age.

He is an IAS officer of Uttar Pradesh cadre of 1974-batch, whose extended tenure of four years as the Cabinet secretariat had ended on 13 June 2015.

Two other IAS officers Gauri Kumar and Anshuman Das the former CMD of NALCO, have been appointed as members in PESB.

About Public Enterprises Selection Board (PESB):

  • It is a high powered body constituted by Government of India in 1987.
  • Its objective is to develop sound managerial policy for the Central Public Sector Enterprises and to advise Government on appointments of Chairman, Managing Director or Chairman-cum-Managing Director and Functional Director to CPSEs.
  • It advises the Government on matters relating to appointments, confirmation or extension of tenure and termination of services of the appointed personnel.
  • It advises the Government on formulation and enforcement of a code of conduct and ethics for managerial personnel in PSEs.
  • It advises the Government on evolving suitable training and development programs for management personnel in PSEs.

Members:

PESB board consists of a part-time or full-time Chairperson and three full-time Members, they are the distinguished performers in management of public or private corporations or public administration.

The Chairperson/Members of the board hold the office for a term of three years or until the age of 65 years whichever is earlier. They can be reappointment for a second term subject to the age-limit of 65 years.

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