Today we are providing you a brief on Banks Board Bureau which is
recently announced by our Finance Minister, for the PSBs. This can be
asked in the General Awareness section. We hope that you will like this
post.
Taking the first step towards a holding company structure for public
sector banks (PSBs), the government announced the setting up of a Banks’
Board Bureau (BBB), where each bank would be monitored on the basis of
"key performance indicators".
The Banks Board Bureau will
recommend appointment of directors in public sector banks (PSBs) and
advice on ways of raising funds and dealing with issues of stressed
assets.
The financial services secretary
Hasmukh Adhia said that the political interference in the functioning of
banks must cease. The BBB would replace the existing appointments board
for PSBs. He also said that BBB will also be a link between the
government and banks and will be engaged with banks to evolve strategies
for them.
The bureau will be a six-member
board comprising three from the private sector and three government
nominees, while the chairman "will be a distinguished banker or
regulator".
Banks have a requirement for
Rs.180,000 crore over the next four years to meet their capital
requirements. Of this, the government will provide Rs.70,000 crore. They
have to raise Rs.1.1 lakh crore from the market. The BBB will advise
the banks on ways of raising fund. Also the government plans to provide
Rs.25,000 crore capital each in the current and next fiscal year, while
Rs.20,000 crore would be provided during 2017-18 and 2018-19.
Facts about Bank Board Bureau
1) Bank Board Bureau (BBB)
will start the functioning from next financial year i.e. from 1st April
2015 and the selection of its member will start in the next six months.
2) 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.
3) 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.
4) Functions: Give recommendations for appointment of full-time Directors as well as non-Executive Chairman of PSBs.
5) 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.
6) Guide banks on mergers and consolidations.
0 comments:
Post a Comment