BBB 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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Union Government to form Bank Board Bureau

Union Government has decided to set up a Bank Board Bureau (BBB) to monitor key performance indicators of two dozen public sector banks (PSBs).

It was announced by Union Finance Minister Arun Jailtley as part of a seven-pronged revamp plan for PSBs dubbed as Indradhanush (rainbow) plan.

Facts about Bank Board Bureau

  • Bank Board Bureau (BBB) will start the functioning from next financial year i.e. from 1st April 2016 and the selection of its member will start in the next six months.
  • It will replace existing system Appointments Board in which appointments for top level jobs at PSBs are made by an appointments committee led by the Reserve Bank of India (RBI) Governor.
  • Composition: The BBB will be a body of ’eminent’ professionals and shall consist of only one government official. It will be six members body with at least 3 former bankers, 2 professionals and secretary, department of financial services representing government.
  • Functions: Give recommendations for appointment of full-time Directors as well as non-Executive Chairman of PSBs.
  • Give advice to PSBs in developing differentiated strategies for raising funds through innovative financial methods and instruments and to deal with issues of stressed assets.
  • Guide banks on mergers and consolidations.

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