Bank bureau stares at uncertain future

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Mains Paper 2: Polity | Statutory, regulatory & various quasi-judicial bodies

From UPSC perspective, the following things are important:

Prelims level: Banks Board Bureau, Indradanush programme, PJ Nayak committee

Mains level: Reform measures in banking sector and their successes


News

Term expiration near

  1. The Banks Board Bureau (BBB) is facing an uncertain future with the tenure of its members coming to an end on March 31, 2018
  2. The government is yet to communicate if the terms will be extended or a new board will be formed

Banks Board Bureau

  1. The BBB was set up under the government’s Indradanush programme to reform public sector banks
  2. It started operations in April 2016
  3. BBB has representatives from government and RBI apart from independent banking professionals
  4. The BBB was conceived by the PJ Nayak committee and was seen as a step taken towards reforming the boards of public sector banks
  5. The committee, in its report, had recommended that the government should distance itself from the appointment process of top management and board members of PSBs

Success of BBB

  1. The BBB was only involved in shortlisting and interviewing candidates
  2. The final appointment was always made by the government
  3. There were instances of delays in appointment by the government despite the BBB recommending it
Banking Sector Reforms
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