Financial Services Institutions Bureau (FSIB)

July 2, 2022

Union government has transformed the “Banks Board Bureau (BBB)” into “Financial Services Institutions Bureau (FSIB)”, through some amendments.

Highlights

Banks Board Bureau (BBB) was the head-hunter for directors of state-owned banks as well as financial institutions.
Amendments were needed, because in 2021 Delhi High Court in its order maintained that, BBB is not a competent body for selecting Directors and General Managers of state-owned general insurers. Due to this, newly-appointed directors of insurers had to leave their positions.
Appointments Committee of the Cabinet (ACC) had asked Department of Financial Services for bringing necessary modifications in Nationalized Banks (Management and Miscellaneous Provisions) Scheme, after getting approval of finance minister and then notify government resolution to establish “FSIB” as a single entity.

About Financial Services Institutions Bureau

The Financial Services Institutions Bureau will make recommendations for appointments of full-time directors as well as non-executive chairman of banks and financial institutions.
Guidelines to select general managers and directors of public sector general insurance companies is also a part of FSIB now.

Chairman and members of FSIB

The ACC has approved the appointment of Bhanu Pratap Sharma as initial chairperson of FSIB. He has been appointed for two years. He was the former Chairman of BBB.
Other members of the FSIB include

Animesh Chauhan– He was the former Chairman and Managing Director of erstwhile Oriental Bank of Commerce
Deepak Singhal– He was RBI’s ex-executive director
Shailendra Bhandari– He was former MD of erstwhile ING Vysya Bank.

Bank Board Bureau

Prime Minister Narendra Modi had approved the constitution of BBB as a body of eminent officials and professionals in 2016. BBB was constituted to make recommendations for appointment of full-time directors and non-executive chairperson of state-owned chairperson and public sector banks (PSBs). It was provided with task of engaging with board of directors of all PSBs for formulating appropriate strategies related to their growth and development.

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