Ananya Gupta
September 11, 2023 05:30
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What is the BBB Full Form? BBB full form is Banks Board Bureau, an autonomous body in India that aims to improve the governance and management of public sector banks. Learn about its functions, composition, and significance for UPSC exams.
The full form of “BBB” is Banks Board Bureau. The Banks Board Bureau (BBB) is an autonomous body established by the Central Government with the aim of enhancing the management and governance of public sector banks (PSBs). Comprising experienced professionals and officials, the BBB serves as an advisory authority for the improvement of PSBs’ functioning.
The BBB’s headquarters is situated at the Central Office of the Reserve Bank of India in Mumbai. It commenced its operations on April 1, 2016, as a component of the Indradhanush Mission, which outlined a comprehensive strategy for the revitalization of PSBs.
Functioning as a not-for-profit autonomous entity, the BBB was envisioned to initially receive financial support from the Reserve Bank of India. Subsequently, it would allocate its expenses among the participating PSBs. With its distinguished team of experts, the Banks Board Bureau contributes to the strategic enhancement of public sector banks’ performance and management practices.
The Banks Board Bureau (BBB) is a crucial institutional initiative in India that was established with the primary objective of improving the governance of public sector banks (PSBs). The BBB acts as an autonomous body that assists the government in selecting suitable candidates for leadership positions in PSBs and improving their performance.
The Banks Board Bureau (BBB) in India is entrusted with several important agendas and functions aimed at improving the governance and performance of public sector banks (PSBs). Some of its key functions include:
The creation of the Banks Board Bureau (BBB) was a significant step in the revamping of public sector banks (PSBs) in India. Here are some key points related to its establishment and composition:
Last year, a significant development unfolded in the financial sector when the Delhi High Court ruled against the effectiveness of the Bank Board Bureau (BBB). The legal challenge, initiated by a General Manager from the National Insurance Company, revolved around the BBB’s appointment of a junior candidate to a director’s position. In the wake of the court’s decision, approximately 10 to 11 directors, all appointed by the BBB, found themselves compelled to submit their resignations.
In response to this administrative impasse, a decisive course of action was taken. The BBB was officially dissolved, making way for the establishment of a new regulatory entity named the Financial Services and Insurance Board (FSIB). The formation of FSIB garnered approval from the Appointments Committee of the Cabinet, a body chaired by the Prime Minister himself. This strategic move was undertaken not only to address the controversies surrounding the BBB’s appointments but also to usher in a fresh and revamped approach to the governance and management of public sector banks and insurance companies.
Currently, Bhanu Pratap Sharma, who previously held the position of Chairman at the Bank Board Bureau (BBB), now serves as the Chairman of the newly constituted Financial Services and Insurance Board (FSIB). Alongside him, the FSIB also comprises esteemed individuals in key roles. Notably, Animesh Chauhan, the former Chairman and Managing Director of Oriental Bank of Commerce, has been appointed as a part-time member. Joining him are Shailendra Bhandari, the former MD and CEO of ING Vysya Bank, and Deepak Singhal, who previously served as the Executive Director of the Reserve Bank of India (RBI). Together, they form an integral part of the FSIB, contributing their expertise to its functions and responsibilities.
The table provides a concise summary of important facts related to the Banks Board Bureau (BBB), which are relevant for both UPSC Prelims and Mains Examinations:
| Banks Board Bureau UPSC | |
|---|---|
| Recent Update related to BBB | The Banks Board Bureau selected SN Rajeswari as the Chairman and Managing Director (CMD) of the Delhi-based Oriental Insurance Company (OIC). |
| Genesis of BBB | The PJ Nayak Committee (2014) to Review Governance of Boards of Banks in India emphasized the need for the establishment of the Banks Board Bureau. |
| Formation Date | The Banks Board Bureau commenced its functioning in April 2016. |
| Authority Type | The BBB is an autonomous recommendatory body. Its recommendations are forwarded to the Ministry of Finance, which holds the final authority to make decisions, often after consultation with the Prime Minister. |
| Main Functions | The primary functions of the Banks Board Bureau include recommending personnel for Public Sector Banks and directors for government-owned insurance companies. |
| Number of Members | The current composition of the Banks Board Bureau for PSBs consists of 7 members:
1 Chairman – Bhanu Pratap Sharma, 1 Secretary – Debasish Panda, 2 Ex-Officio Members – N S Vishwanathan & Sailesh, 3 Part-Time Members – Panja Pradeep Kumar, Pradip Panalal Shah and Vedika Bhandarkar |
| Head of BBB | As of August 2020, the head of the Banks Board Bureau is Bhanu Pratap Sharma, who previously served as the Former Secretary, Department of Personnel & Training of the Government of India. |
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