What does Banks Board Bureau do? Delhi HC’s order & its link to PSU insurers

Delhi High Court has axed the power of Banks Board Bureau (BBB) to select directors of PSU insurers which will slow down the selection process of top officials of public sector insurance companies.

Do you know much about Banks Board Bureau and how it functions?

Here we tell you how BBB cropped us and what was the objectives to form it. The board was formed to promote excellence in Corporate Governance in Public Sector Financial Institutions. It is an autonomous body of the Government of India committed to improving the governance and boards of public sector financial institutions. The Secretariat of the bureau currently comprises secretary and four officers. It has a total 94 positions.

What Does It Do?

Search and Select apposite personages for Board of Public Sector Banks, Public Sector Financial Institutions and Public Sector Insurance Companies and recommend measures to improve Corporate Governance in these Institutions.

Central Government notified the amendment to the Nationalised Banks (Management and Miscellaneous Provisions) Scheme, 1980 providing the legal framework for composition and functions of the Banks Board Bureau on March 23, 2016. The Bureau accordingly started functioning from April 01, 2016 as an autonomous recommendatory body.

The functions of the Bureau outlined in the Section 7(C) of the Scheme and in subsequent amendments as per orders of the Appointment Committee of the Cabinet are – a) To recommend the selection and appointment of Board of Directors in Mandated Institutions (Whole Time Directors and Chairman); b) To advise the Central Government on matters relating to appointments, confirmation or extension of tenure and termination of services of the Directors of mandated institutions