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 Banks Board Bureau (BBB).

About Financial Services Institution Bureau:

• The Financial Services Institutions Bureau will select the chiefs of public sector banks and insurance companies.
• The FSIB will have the clear mandate to issue guidelines and select general managers and directors of state-run non-life insurers, general insurers and Financial Institutions.
• FSIB will be the single entity for making recommendations for appointments of WTD (Whole-time Director) and NEC (Non-executive Chairman) in Public Sector Banks, India Private Limited company and Financial Institutions.
• The Department of Financial Services shall first carry out necessary modifications in the Nationalised Banks (Management and Miscellaneous Provisions) Scheme of 1970/1980 (as amended).

PRACTICE QUESTION:

Consider the following statements regarding ‘Financial Services Institution Bureau’:

1. It will select the chiefs of public sector banks and insurance companies.

2. RBI governor acts as its chairperson

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer