Home   »   Bank Board Bureau   »   Financial Services Institutions Bureau

Financial Services Institutions Bureau


FSIB UPSC: Relevance

  • GS 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.


FSIB India: Context

  • Recently, the Appointments Committee of the Cabinet (ACC) headed by the Prime Minister has decided to set up Financial Services Institutions Bureau (FSIB) as a replacement body of Bank Board Bureau.


Financial Services Institutions Bureau: Key points

  • FSIB has been established as a single entity for making recommendations for appointments of Directors in public sector banks (PSBs), public sector insurers (PSIs) and financial institutions (FIs).
  • FSIB will be headed by former Banks Board Bureau Chairman Bhanu Pratap Sharma for two years.
  • The new entity will also make recommendations for selection of General Managers and Directors in non-life PSIs.
  • After getting approval from ACC, the Department of Financial Services (DFS) in the Ministry of Finance is expected modify certain provision in the Nationalised Banks (Management and Miscellaneous Provisions) Scheme of 1980.
  • FSIB would be a professional body with autonomy in its affairs and shall have its own secretariat.


Financial Services Institutions Bureau_3.1

Financial Services Institutions Bureau: Responsibilities

  • The FSIB will also advise the government on a suitable performance appraisal system for whole-time directors and non-executive chairmen of the state-run financial services institutions.
  • The body will build a data bank relating to the performance of public-sector banks (PSBs), FIs and insurance companies.
  • It will advise the government on “formulation and enforcement of a code of conduct and ethics for whole-time directors” in these institutions.
  • The FSIB will even help these state-run banks, FIs and insurers in developing business strategies and capital raising plans, etc.

वित्तीय सेवा संस्थान ब्यूरो

FSIB members

  • The FSIB will comprise
    • a chairperson nominated by the central government;
    • the secretaries of the departments of financial services and public enterprises;
    • the chairman of the Insurance Regulatory and Development Authority of India; and
    • a deputy governor of the Reserve Bank of India (RBI).
  • Apart from them, there will be three members with knowledge of banks and other financial institutions, and three more with knowledge of insurance.
  • In future, the FSIB chairman and the three members handling affairs relating to banking and financial institutions will be selected by a search committee that will comprise the RBI governor and the secretaries of the departments of financial services and personnel and training.


Financial Services Institutions Bureau_4.1

What’s next for BBB?

  • The establishment of FSIB would mean the end for the Banks Board Bureau (BBB), which was formed in 2016 as an autonomous body.
  • The body was mandated to search and select personages for the Board of Public Sector Banks, Public Sector Financial Institutions and Public Sector Insurance Companies and recommend measures to improve corporate governance in these institutions.


Read current affairs for UPSC

CIET (NCERT) wins UNESCO’s King Hamad Bin Isa Al-Khalifa Prize World Mental Health Report 2022 National Conference on Cyber Safety and National Security Single-use Plastic Ban to Effective from 1st July
MoHUA Launches NIPUN Scheme under DAY NULM Pragati Maidan Integrated Transit Corridor Critical Information Infrastructure (CII): Definition, Need and Protection UNHCR Report on Forced Displacement in 2021
Payment Vision 2025 Parliamentary Panel Report on Promotion and Regulation of E-commerce in India Major Economies Forum on Energy and Climate (MEF) Key Takeaways of WTO 12th Ministerial Conference
India-EU Free Trade Agreement (FTA): Negotiations Re-launched Desertification and Drought Day Criminal cases in Parliament: 40% Newly Elected RS MPs have Criminal Cases AGNIPATH Scheme: Age Relaxation and Anti-Agnipath Protests

Sharing is caring!