In News: The FSIB has asked the Indian Banks’ Association (IBA) to appoint an institution or firm to design and deliver a leadership development programme for PSU banks (PSBs).
- Recently, Financial Services Institutions Bureau (FSIB) stated it will select top officials of banks via a grooming process under a leadership development programme.
- The programme aims to groom business leaders of the PSBs who should be ready to assume top management and board level positions in PSBs and to drive long-term sustainable business in a competitive market place
- The firm which will design and execute the programme will be selected by the IBA through a bidding process.
- The objective is to develop future generation of leaders who are digitally savvy, strategic thinkers with capability to build highly collaborative teams and create a customer centric organisation that thrives in a very dynamic competitive environment.
- The programme will up-skill around 75 participants in the senior management.
- The proposed firm should have capability to design and deliver a training programme for senior officers of PSU banks that can be delivered through three modes — online as e-learning modules, online through live webinars, meetings and through in-person mode.
Financial Services Institutions Bureau
- Recently, 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).
- 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 ACC has approved the appointment of Bhanu Pratap Sharma as Initial chairperson of FSIB for two years. He was the former Chairman of BBB.
Banks Board Bureau (BBB)
- The government, in 2016, approved the constitution of the BBB to make recommendations for appointment of whole-time directors as well as non-executive chairpersons of Public Sector Banks (PSBs) and state-owned financial institutions.
- It was an autonomous recommendation body.
- Delhi High Court had struck down the BBB’s power to select directors of Public Sector Undertaking, general insurance companies
- Delhi High Court in 2020 ruled that the BBB couldn’t select the general managers and directors of state-run general insurers, as it was not a competent body.
Source: Indian Express
Previous Year Question
Q.1) The Chairmen of public sector banks are selected by the (2019)
- Banks Board Bureau
- Reserve Bank of India
- Union Ministry of Finance
- Management of concerned bank
Q.2) With reference of the ‘Banks Board Bureau (BBB)’, which of the following statements are correct? (2022)
- The Governor of RBI is the Chairman of BBB.
- BBB recommends for the selection of heads for Public Sector Banks.
- BBB helps the Public Sector Banks in Developing strategies and capital raising plans.
Select the correct answer using the code given below:
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 2