Financial Services Institutions Bureau (FSIB)

Context: Recently Financial Services Institutions Bureau (FSIB) recommended names for the posts of managing directors of Bank of Baroda and Bank of India.

About Financial Services Institutions Bureau (FSIB):

• It’s a government body set up under the department of financial service by central government in 2022.
• The Secretariat of the Bureau currently comprises of Secretary and four officers.
• It replaced Banks Board Bureau (BBB).
• It aims to identify manpower capabilities and ensure proper selection of talent for senior positions at financial institutions owned by the government.
• The board is entrusted to making recommendations of full-time appointment of directors and non-executive chairman of state-run financial services / Public sector organization and on other matters relating to personnel management in the institution.
• It comprises of Ex-Officio members from Government other the Regulatory Bodies and experts from the respective field.

Function of FSIB:

• To advise the Government on matters relating to appointments, transfer or extension of term of office and termination of services of the said directors.
• To advise the Government on the desired management structure at the Board level for Public Sector Bank, Public financial institution and Public Sector Insurers.
• To advice government for performance appraisal system and code of conduct and ethics for the directors.
• To ensure suitable training and development programmes for management in PSBs, FIs and PSIs.
• To Help institution for developing business strategy and raising capital plan.

Source: The Hindu

Previous Year Questions

Q.1) With reference to the ‘Banks Board Bureau (BBB)’, which of the following statements are correct? (2022)

1. The Governor of RBI is the Chairman of BBB.
2. BBB recommends for the selection of heads for Public Sector Banks.
3. BBB helps the Public Sector Banks in developing strategies and capital raising plans.

Select the correct answer using the code given below:

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3

Q.2) Consider the following statements:

1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest.
3. The Governor of the RBI draws his power from the RBI Act.

Which of the above statements are correct? (2021)

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3