{"id":20,"date":"2023-10-09T05:27:35","date_gmt":"2023-10-08T23:57:35","guid":{"rendered":"https:\/\/lotusarise.com\/news\/uncategorized\/financial-services-institutions-bureau-fsib\/"},"modified":"2023-10-09T06:40:18","modified_gmt":"2023-10-09T01:10:18","slug":"financial-services-institutions-bureau-fsib","status":"publish","type":"post","link":"https:\/\/lotusarise.com\/news\/upsc\/financial-services-institutions-bureau-fsib\/","title":{"rendered":"Financial Services Institutions Bureau (FSIB)"},"content":{"rendered":"\n<ul class=\"wp-block-list\">\n<li>Recently, the <strong>Appointments Committee of the Cabinet (ACC)<\/strong> headed by the Prime Minister has decided to set up <strong>Financial Services Institutions Bureau (FSIB)<\/strong> as a replacement body of <strong>Bank Board Bureau<\/strong>.<\/li>\n\n\n\n<li>The Financial Services Institutions Bureau will&nbsp;<strong>select the chiefs of public sector banks and insurance companies.<\/strong><\/li>\n\n\n\n<li>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.<\/li>\n\n\n\n<li>FSIB will be the&nbsp;<strong>single entity<\/strong>&nbsp;for making&nbsp;<strong>recommendations for appointments of WTD (Whole-time Director)<\/strong>&nbsp;and&nbsp;<strong>NEC (Non-executive Chairman)<\/strong>&nbsp;in&nbsp;<strong>Public Sector Banks, India Private Limited company and Financial Institutions.<\/strong><\/li>\n\n\n\n<li>After getting approval from ACC, the Department of Financial Services (DFS) in the Ministry of Finance is expected modify certain provision in the&nbsp;<strong>Nationalised Banks (Management and Miscellaneous Provisions) Scheme of 1980.<\/strong><\/li>\n\n\n\n<li>FSIB would be a professional body with autonomy in its affairs and shall have its&nbsp;<strong>own secretariat.<\/strong><\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">FSIB Responsibilities<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The FSIB will also advise the government on a suitable&nbsp;<strong>performance appraisal system<\/strong>&nbsp;for <strong>whole-time directors and non-executive chairmen <\/strong>of the state-run financial services institutions.<\/li>\n\n\n\n<li>The body will&nbsp;<strong>build a data bank<\/strong>&nbsp;relating to the performance of public-sector banks (PSBs), FIs and insurance companies.<\/li>\n\n\n\n<li>It will advise the government on \u201c<strong>formulation and enforcement of a code of conduct and ethics for whole-time directors\u201d<\/strong> in these institutions.<\/li>\n\n\n\n<li>The FSIB will even help these state-run banks, FIs and insurers in <strong>developing business strategies and capital raising plans<\/strong>, etc.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">FSIB members<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The FSIB will comprise\n<ul class=\"wp-block-list\">\n<li>a <strong>chairperson nominated by the central government<\/strong>;<\/li>\n\n\n\n<li>the <strong>secretaries<\/strong> <strong>of the departments of financial services and public enterprises<\/strong>;<\/li>\n\n\n\n<li>the <strong>chairman of the Insurance Regulatory and Development Authority of India<\/strong>; and<\/li>\n\n\n\n<li>a<strong> deputy governor of the Reserve Bank of India (RBI)<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Apart from them, there will be&nbsp;<strong>three members with knowledge of banks<\/strong>&nbsp;and other financial institutions, and three more with knowledge of insurance.<\/li>\n\n\n\n<li>In future, the FSIB chairman and the three members handling affairs relating to banking and financial institutions will be selected by a&nbsp;<strong>search committee<\/strong>&nbsp;that will comprise the RBI governor and the secretaries of the departments of financial services and personnel and training.<\/li>\n<\/ul>\n\n\n\n\n\n<h3 class=\"wp-block-heading\">Banks Board Bureau (BBB)<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Banks Board Bureau (BBB) has its genesis in the recommendations of&nbsp;<strong>\u2018The Committee to Review Governance of Boards of Banks in India<\/strong>, May 2014&nbsp;<strong>(Chairman &#8211; P. J. Nayak)\u2019.<\/strong><\/li>\n\n\n\n<li>The government, in 2016, approved the constitution of the BBB to make recommendations for appointment of <strong>whole-time directors<\/strong> as well as<strong> non-executive chairpersons<\/strong> of Public Sector Banks (PSBs) and state-owned financial institutions.<\/li>\n\n\n\n<li>It <strong>was an autonomous recommendation body.<\/strong><\/li>\n\n\n\n<li>The Banks Board Bureau was a public authority as defined in the Right to Information Act, 2005.<\/li>\n\n\n\n<li>The Ministry of Finance has the final decision-making authority on the appointments in consultation with the Prime Minister\u2019s Office.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Functions:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Apart from recommending personnel for the PSBs, the Bureau had also been assigned with the task of&nbsp;<strong>recommending personnel for appointment as directors in government-owned&nbsp;insurance companies.<\/strong><\/li>\n\n\n\n<li>It was also entrusted with the task of engaging with the board of directors of all PSBs to&nbsp;<strong>formulate appropriate strategies for their growth and development.<\/strong><\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" src=\"https:\/\/lotusarise.com\/news\/wp-content\/uploads\/2022\/07\/Banks-Board-Bureau.jpg\" alt=\"Banks Board Bureau\" class=\"wp-image-21175\" title=\"\"><\/figure>\n<\/div>\n\n\n<p class=\"has-kb-palette-4-color has-text-color wp-block-paragraph\"><strong>PYQ. The Chairmen of public sector banks are selected by the (2019)<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>(a)<\/strong>&nbsp;Banks Board Bureau<br><strong>(b)<\/strong>&nbsp;Reserve Bank of India<br><strong>(c)<\/strong>&nbsp;Union Ministry of Finance&nbsp;<br><strong>(d)<\/strong>&nbsp;Management of concerned bank<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Ans: (a)<\/strong> Banks Board Bureau<\/p>\n","protected":false},"excerpt":{"rendered":"<p>FSIB Responsibilities FSIB members Banks Board Bureau (BBB) Functions: PYQ. The Chairmen of public sector banks are selected by the (2019) (a)&nbsp;Banks Board Bureau(b)&nbsp;Reserve Bank of India(c)&nbsp;Union Ministry of Finance&nbsp;(d)&nbsp;Management of concerned bank Ans: (a) Banks Board Bureau<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-20","post","type-post","status-publish","format-standard","hentry","category-upsc"],"taxonomy_info":{"category":[{"value":1,"label":"UPSC"}]},"featured_image_src_large":false,"author_info":{"display_name":"LotusArise","author_link":"https:\/\/lotusarise.com\/news\/author\/lotusarise469gmail-com\/"},"comment_info":0,"category_info":[{"term_id":1,"name":"UPSC","slug":"upsc","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":37,"filter":"raw","cat_ID":1,"category_count":37,"category_description":"","cat_name":"UPSC","category_nicename":"upsc","category_parent":0}],"tag_info":false,"_links":{"self":[{"href":"https:\/\/lotusarise.com\/news\/wp-json\/wp\/v2\/posts\/20","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotusarise.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotusarise.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/news\/wp-json\/wp\/v2\/comments?post=20"}],"version-history":[{"count":0,"href":"https:\/\/lotusarise.com\/news\/wp-json\/wp\/v2\/posts\/20\/revisions"}],"wp:attachment":[{"href":"https:\/\/lotusarise.com\/news\/wp-json\/wp\/v2\/media?parent=20"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotusarise.com\/news\/wp-json\/wp\/v2\/categories?post=20"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotusarise.com\/news\/wp-json\/wp\/v2\/tags?post=20"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}