Financial Services Institution Bureau
Why in News?
» The Cabinet Appointments Committee (ACC) has passed a government resolution to establish the Financial Services Institutions Bureau (FSIB) in place of the Bank Board Bureau (BBB).
» The new framework had proposed by the Department of Financial Service, Ministry of Finance.
What is the Financial Services Institutions Bureau?
» The Financial Services Institutions Bureau will select the Chief of Public Sector Banks and Insurance Companies.
» FSIB will be the single entity for making recommendations for appointments of the Whole-time Director and Non-executive Chairman in Public Sector Banks, India Private Limited company and Financial Institutions.
Who is the Chairman of FSIB?
The ACC has approved the appointment of Bhanu Pratap Sharma as the Initial Chairperson of FSIB for two years.
He was the former Chairman of BBB.
What is the Banks Board Bureau (BBB)?
The Banks Board Bureau (BBB) has its genesis in the recommendations of 'The Committee to Review Government of Boards of Banks in India, May 2014, whose chairman is P.J. Nayak.
Formation of BBB -
In 2016, the government approved the constitution of the BBB to make recommendations for the appointment of the whole-time directors along with non-executive chairpersons of Public Sector Banks (PSBs) and State-owned Financial Institutions.
What is the reason take the place of BBB with FSIB?
In 2020, Delhi High Court ruled that the BBB doesn't select the general managers and the directors of state-run general insurers as it was not a competent body.
