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Financial Services Institution Bureau

Financial Services Institution Bureau:

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).

  • The new framework was proposed by the Department of Financial Service, Ministry of Finance.
  • 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).
  • Chairman of FSIB: 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.
  • 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.
  • The Banks Board Bureau was a public authority as defined in the Right to Information Act, 2005.
  • The Ministry of Finance has the final decision-making authority on the appointments in consultation with the Prime Minister’s Office.
  • Apart from recommending personnel for the PSBs, the Bureau had also been assigned with the task of recommending personnel for appointment as directors in government-owned insurance companies.