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Bank bureau stares at uncertain future
Context:
- The Banks Board Bureau (BBB) is facing an uncertain future with the tenure of its members coming to an end on March 31, 2018.
Banks Board Bureau (BBB):
- The Banks Board Bureau (BBB) was set up in April 2016, under the government’s Indradanush programme to reform public sector banks.
- The BBB was seen as a step taken towards reforming the boards of public sector banks.
- The term of all the members will come to end on 31 March, 2018.
- The government is yet to communicate if the terms will be extended or a new board will be formed.
Loopholes in the management of BBB:
- The government was supposed to distance itself from the appointment process of top management and board members of PSBs.
- It is a function that could be performed by the BBB.
- However, in practise, the BBB was involved in shortlisting and interviewing candidates — the final appointment was always made by the government.
- There were instances of delays in appointment by the government despite the BBB recommending it.
- The issue of governance and role of the board in public sector banks came to the fore again after the ₹11,500 crore PNB scam broke out.
