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BBB Full Form – Banks Board Bureau, Functions, Composition, Chairman

Ananya Gupta September 11, 2023 05:30 6612 0

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.

BBB Full Form – Banks Board Bureau, Functions, Composition, Chairman

BBB Full Form

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.

Banks Board Bureau

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.

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Agenda/Functions Of BBB

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:

  1. Appointments and Recommendations: One of the primary functions of BBB is to assist in the selection and appointment of top management positions in PSBs, such as Chairpersons, Managing Directors, and Chief Executive Officers. It recommends suitable candidates based on merit and expertise.
  2. Leadership Development: BBB focuses on leadership development and capacity building within PSBs. It works to identify and nurture potential leaders within the banking sector, contributing to a talent pipeline for the future.
  3. Performance Evaluation: The Bureau evaluates the performance of PSBs’ top management based on various parameters, including financial performance, asset quality, and customer service. This evaluation aids in promoting accountability and efficient management practices.
  4. Governance Reforms: BBB suggests governance reforms and strategies to enhance transparency, efficiency, and accountability within PSBs. These recommendations are designed to align the banks with best practices in corporate governance.
  5. Human Resource Management: The Bureau provides guidance on human resource management practices, including talent acquisition, training, and succession planning. This ensures the availability of skilled professionals to lead the banks effectively.
  6. Advisory Role: BBB serves as an advisory body to the government on matters related to PSBs. It offers insights and recommendations to improve the overall functioning and health of the banking sector.
  7. Strategic Planning: BBB contributes to strategic planning and policy formulation for PSBs. It helps in aligning the banks’ strategies with the broader economic goals and development priorities of the country.
  8. Autonomy and Independence: The Bureau aims to provide PSBs with a level of autonomy in their operations, while ensuring adherence to regulatory guidelines and accountability.

Composition Of BBB

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:

  1. Recommendations and Inception: The idea for the Banks Board Bureau emerged from the recommendations of the Nayak Committee, which was appointed by the Reserve Bank of India (RBI) to suggest reforms for PSBs. As part of the larger “Indradhanush Mission” aimed at revitalizing PSBs, the Union Government announced the establishment of BBB in August 2015.
  2. Formation and Leadership: The first Banks Board Bureau was established in February 2016, with its headquarters located in Mumbai, Maharashtra. The inaugural chairman of BBB was Vinod Rai, a former Comptroller & Auditor General. His extensive experience and leadership played a pivotal role in shaping the early direction of BBB’s efforts.
  3. Replacement of Appointments Board: The Banks Board Bureau was introduced as a replacement for the earlier Appointments Board of the Government. This transition aimed to bring about a more streamlined and focused approach to appointments, leadership development, and governance of PSBs.
  4. Objectives: The primary objective behind the establishment of BBB was to usher in a new era of governance and business strategies for state-owned banks. The intention was to position these banks on par with their counterparts in the private sector, enabling them to operate more efficiently and competitively.
  5. Composition: The Banks Board Bureau is composed of a diverse group of members. It includes the Chairman, three ex-officio members representing the Department of Public Enterprises, Department of Financial Services, and the Reserve Bank of India. Additionally, there are five expert members, two of whom are from the private sector. This composition ensures a balance of government representation and industry expertise.

Financial Services and Insurance Board

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.

Financial Services and Insurance Board Chairman

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.

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Banks Board Bureau UPSC

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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Banks Board Bureau FAQs

The Banks Board Bureau (BBB) is an autonomous body established by the Indian government to provide recommendations and guidance for improving the governance and management of public sector banks (PSBs) in the country.

The primary objective of the BBB is to recommend suitable candidates for top leadership positions in PSBs and government-owned insurance companies. It aims to enhance transparency, accountability, and professionalism in the selection process.

BBB plays a crucial role in recommending eligible candidates for key positions like Chairman, Managing Director, and Executive Directors of PSBs. It evaluates and suggests candidates based on their qualifications, experience, and suitability for the roles.

BBB's establishment signifies a move towards professionalizing the leadership of PSBs. It aims to bring greater efficiency, transparency, and accountability to the selection process for top management positions, thereby improving the overall performance of PSBs.

Recent updates include the selection of individuals for leadership positions in PSBs, such as Chairman and Managing Director roles, as well as recommendations for improving the functioning of the banking sector.
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 Final Result – CIVIL SERVICES EXAMINATION, 2023.   Udaan-Prelims Wallah ( Static ) booklets 2024 released both in english and hindi : Download from Here!     Download UPSC Mains 2023 Question Papers PDF  Free Initiative links -1) Download Prahaar 3.0 for Mains Current Affairs PDF both in English and Hindi 2) Daily Main Answer Writing  , 3) Daily Current Affairs , Editorial Analysis and quiz ,  4) PDF Downloads  UPSC Prelims 2023 Trend Analysis cut-off and answer key

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 Final Result – CIVIL SERVICES EXAMINATION, 2023.   Udaan-Prelims Wallah ( Static ) booklets 2024 released both in english and hindi : Download from Here!     Download UPSC Mains 2023 Question Papers PDF  Free Initiative links -1) Download Prahaar 3.0 for Mains Current Affairs PDF both in English and Hindi 2) Daily Main Answer Writing  , 3) Daily Current Affairs , Editorial Analysis and quiz ,  4) PDF Downloads  UPSC Prelims 2023 Trend Analysis cut-off and answer key

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UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध
Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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