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9 PM Daily NEWS Brief

9 PM Daily Brief – 14th September 2016

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Click here to Download 9 PM Daily Brief PDF (14th Sept. 2016)


NATIONAL

 

[1]. Approved strength of judges enough to end backlog: Law panel head

 The Hindu

Context:- With current logjam between executive and the judiciary over judicial appointments not looking to settle anytime soon, Law commission chairman and former SC judge has said that instead of increasing the number of judges, steps should be taken to fill the existing vacancies

It should be noted that this view comes in time when SC has directed the Law Commission to file a report within a year on whether it is permissible to rid the apex court of routine appeals to help it focus on cases of national and public interest.

What is the sanctioned strength and the present vacancies in High Courts in India?

Sanctioned strength of judges for HC – 1079

Vacancies in HC – 480

Sanctioned strength of judges in SC – 31

Vacancies in SC – 3

The NJAC act was struck down by the SC as unconstitutional citing the primacy of judiciary. Justice Balbir Chauhan said that in a democracy no one is supreme. Collective opinion matters in a democracy.

 

[2]. NGT contempt notice against UP govt over ethanol production 

The Hindu

Context:- National Green Tribunal has issued contempt notices to Uttar Pradesh government and other authorities on a plea seeking action against illegal manufacturing, storage and transportation of ethanol by distilleries and sugar mills in the State.

NGT’s order

The NGT on May 9 had directed that no manufacturer will produce absolute alcohol (Ethanol) without seeking appropriate permission from the Ministry of Commerce, Chief Controller Explosives and other authorities.

  What was the plea?

The plea was filed by the NGO SAFE stating that the authorities were allowing illegal operation of ethanol producing units without license and in contravention of the Manufacture, Storage and Import of Hazardous Chemical Rules 1989, putting lives at grave risk.

Permission from NGT is required under the following rules,

  • Manufacture, Storage and Import of Hazardous Chemical Rules, 1989
  • Chemical Accidents (Emergency Planning, Preparedness and Response) Rules 1996

Note: – Both the rules have been notified under the provision of Environment (Protection) Act, 1986

 

EDITORIAL/OPINION 

[1]. A first step to wholesome reform

The Hindu

Context:- Author, a former DGP, points out the benefits of the latest SC ruling wherein uploading of First Information Report (FIR) has been mandatory within 48 hours. He also directs our attention to the problems plaguing the police administration in the country

Ruling of the SC

Supreme Court on 7th Sept ordered States and Union Territories to upload, on police or government websites, First Information Reports (FIRs) within 24 hours of their registration in police stations

The court order came on a PIL filed by ‘Youth Bar Association of India’ that had sought directions to the Centre as well as all states and union territories to order uploading of FIRs within 24 hours.

Note: – For a detailed overview of the ruling refer to the 9pm brief of 8th September 2016

Benefits of the ruling

  • It will help to promote transparency and curb arbitrariness in police work
  • Beneficial to the victim, who will now know that complaint against him has been brought on record. This will curb random dubious arrests and killings of victims having a poor background.
  • Sometimes police officers do not act on FIR even after registering it thereby aiding the offender but now as uploading of FIR has been made mandatory, officers won’t be able to sustain such malpractices
  • Faking crime statistics would be difficult now

Exceptions to the ruling

SC has also prescribed few exceptions under which the uploading of FIR is not mandatory. In cases dealing with,

  • National security like acts of terror or insurgency
  • Sexual crimes against women and children so as to protect privacy of the victim
  • Conditions for the exemption:
  1. Such a decision will not be taken by an officer lower than the rank of Deputy Superintendent of the Police (DSP)
  2. Such a decision is appealable by an aggrieved party to a committee to be set up by a district superintendent of police or a commissioner of police
  • States located in difficult terrain or having poor internet connectivity have been given 72 hours instead of 24 to upload the FIRs

Issue of logistics

Every police station in our country is not connected through internet connection. To overcome this problem, author suggests the following way,

  • Delivering FIRs physically: In case of poor or no internet connectivity, a special messenger can be sent to district police headquarters to hand deliver a hard copy of the FIRs. State Crime Branch of police at the Headquarters can act as a repository or nodal agency to upload FIRs

Author goes on to state that,

  • Supreme Court has time and again proved itself as a protector of the Fundamental Rights of the citizens by issuing appropriate directions from time to time.
  • SC has maintained that human rights are sacrosanct and can’t be crushed upon by the political executive by the use of police machinery

Successful implementation

For nay court order to be successful, it needs to be implemented in letter and spirit. Author suggests,

  • The key stakeholders involved here i.e. the executive, the police and the general public should welcome the court order and spread awareness about it as much as they can

What more could have been done

Author states that SC could have issued directions in its order to address the following problems,

  • Inadequacy of the police resources at grass-root level. Police in various states is riddled with unfulfilled vacancies. SC should have made an annual recruitment mandatory to bridge this current gap.
  • Corruption: Even registering a complaint is like bargain. People find it difficult to register an FIR without paying bribes.

Conclusion

Police officers head the district police forces based on their political leaning. This malaise is far worse and unless this evil is eliminated, changes like mandatory uploading of FIR, shall only prove to be purely superficial.

 

[2]. Sharing without caring 

The Hindu

Context:- Karnataka has been witnessing mindless violence in the wake of recent SC directive that ordered it to release water to Tamilnadu for 10 days continuously.

 SC’s order

As per SC’s order Karnataka had to release around 15000 cusecs of water daily to Tamilnadu for 10 days straight but the amount has been brought down to 12000 cusecs now.

Who decides and monitors the water flow?

Technicalities of the water sharing is decided by Cauvery Management Board & it monitors the water sharing with the help of Cauvery Regulation Committee and respective state authorities.

Author points that,

Fringe elements are using Cauvery issue to flame feelings of hatred among both sides. People of Tamil descent are being targeted in Karnataka and vice versa is happening in Tamilnadu.

Both centre and state should make sure that a sharing issue is not transformed in to an issue of linguistic identity.

Conclusion

Water sharing is a technical issue and should be left in the hands of experts. Politicians and fringe elements looking to take undue advantage of the sensitive nature of the issue should be suppressed upfront by both state and the centre.

Note: – For a detailed look at the Cauvery issue please refer to the 9pm brief dated 3rd September 2016

 

[3]. Involve the States more in higher education

 The Hindu

Context:- With the gap in quality of education and research widening between the Central and State institutions, the dream of India becoming the R&D hub of the world, of expanding the manufacturing sector, of creating over ten million jobs annually, or becoming the knowledge superpower is becoming harder to realize.

Author puts forth his suggestion that in order for us to improve our higher education and research sector, states need to be given more say in policy making in these areas.

Current scenario is grim

9 out of 10 engineers in India are unemployable and add little value to the ongoing research & innovation as a result of the poor quality of education that they have received.

 How central government wants to tackle the problem?

Central government thinks that opening up more IITs and medical institutes under its control will automatically improve the quality.

This line of thinking is fallacious as per author because centre only controls few 100 institutions in the country which generate less than 1% of the total graduates in India

Situation at State level

State institutions produce over 95% of the nation’s graduates yet they have little say or presence in the bodies that regulate or fund them.

States also do not realize their role in strengthening the higher education sector as the most they ask centre is to establish next IIT in their state.

What is the solution?

With the percentage of States in terms of overall production of graduates very high, it is time that they start pushing the higher education sector in their respective territories.

  • Integrated approach: Plans for economic and infrastructure development in a state can be linked with plans to improve higher education. This can be done in number of ways. One way of doing that, as per author, is to
  1. Have a museum in every college that displays the natural resources, energy and ecology, industrial and agricultural products and services, and human skills and technologies of the surrounding area, within a radius of few kilometers.
  2. A major part of the curriculum in research and education in the colleges can be built around these locations, their agriculture and industry.
  3. Steps like this would ensure that the higher education and research being done in an institution is not irrelevant & students are themselves able to realize the impact it will have on the surrounding area.
  • Funding: Funding for such initiatives by state could be done through following,
  1. States can increase their own share
  2. Centre, which would have to contribute more to such efforts of the states
  3. Private sector & Diaspora can also contribute: In this case, States would need to improve their image in terms of quality teaching and research to attract private funding.
  4. A Public-Private Partnership (PPP) model can also work

Conclusion

Government, academia, private players and the State governments need to work together to improve the situation of higher education and research sector in India. Otherwise, this downward slope will continue & worsen in the coming times.

 

[4]. In trade, three is not a crowd

The Hindu

Context:- Author points out that instead of integrating the economies of India, Afghanistan & Pakistan together, APTTA (Afghanistan-Pakistan Trade Transit Agreement) has proved to a point of mutual tension between the three countries.

What is APTTA?

It is a bilateral trade agreement between Pakistan and Afghanistan that has been renegotiated several times.The treaty, signed in 1950, gave Afghanistan the right to import duty-free goods through Karachi.

What, the agreement, allows?

  • The agreement allows Afghanistan access to the dry port of Lahore, and also access to a land route up to the Wagah border with India.
  • In return for being allowed to drive Afghan trucks with fruit and dry fruit up to Wagah, Pakistan would be given transit to Central Asian countries bordering Afghanistan, where Pakistani textiles, and agricultural and surgical goods have a good market.

What, the agreement, doesn’t allow?

  • It does not allow Afghan goods to cross the actual border. Afghan trucks are unloaded at Wagah and goods are loaded onto Indian trucks. The agreement doesn’t allow Afghans to use Pakistan as a corridor to India.
  • It does not allow India to use the land route to export goods to Afghanistan either.

Afghanistan wants that India should be included in APTTA while Pakistan is strongly against it, pointing to worsening of political ties with India.

India had also expressed the desire to join APTTA as it would provide access to Central Asian States (CAS) and improve regional connectivity.

Afghanistan wants access to a larger Indian market for its goods, which are mostly perishable in nature like dry fruits & fruits while Pakistan says that it can’t allow India’s entry into APTTA as there is no such clause in the agreement.

Conclusively it can be said that, India-Afghan trade can only improve if Indo-Pak trade improves which can only happen if Indo-Pak ties improve.

Hence, it was thought that APTTA would force these three countries to work together but it seems a trilateral agreement is out of the question as of now. Presently, all three nations are looking at alternative ways to trade, without relying on access through neighboring countries.

India is working on a corridor via Iran’s Chabahar port, where goods will go up the land route and connect to the Zaranj-Delaram Highway without touching Pakistan.

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                                                          Bypassing Pakistan (Source: newsflicks)

Pakistan will connect directly to China through the small strip through PoK and Gilgit-Baltistan once the China-Pakistan Economic Corridor is ready, avoiding both India and Afghanistan.

18Bypassing India & Afghanistan (Source: BBC)

Afghanistanis also actively supporting the One belt One road initiative of China to bypass Pakistan. It is also looking forward to increased trade with India once Iranian port of Chahbahar is operational. India is planning to build a rail line from Chahbahar to iron-ore rich Afghan province of Bamiyan.

  • In Sept this month, an 84-carriage train carrying millions of dollars of goods from the eastern city of Yiwu reached the Afghan-Uzbek border bound for Mazar-i-Sharif.
  • A single trip of 7,500 km takes 15 days, half the time needed for maritime transportation (30 days) and a sixth of the time it takes via Pakistan or Iran’s land route (90 days). The service will run once a week by the end of this year, and will connect up to the brand new airport built by Germany and the United Arab Emirates in Mazar

 

 

As we can see, all three countries are working keenly on ways to avoid direct trade with each other but in doing so the one who suffers most is the citizenry of these nations.

 

A rethink of policy

Informal trade between India and Pakistan via Dubai is estimated to be at $4.71 Billion which is more than the formal trade i.e. $2.3 billion. India & Pakistan both need to change their policy and engage in trade actively.

  • India doesn’t want to talk without sidelining terror but in following such a policy traders and manufacturers suffer, as they have to trade informally via Dubai.
  • Pakistan says it doesn’t want Indian goods flooding its markets but it is ignoring the fact that the economic corridor it is building with China will do exactly that albeit with Chinese goods.
  • Afghanistan too can’t choose to ignore the huge potential SAARC region holds. It is largely dependent on India and Pakistan for its imports

Conclusion

Afghanistan should pursue the idea of including India in APTTA but it won’t be a straightforward path. It will have to offer concessions to Pakistan like including Tajikistan, which Pakistan wants, in the agreement.

Countries should not ignore the fact that the shortest distance between two points is always going to be a straight line.

 

[5]. Poor Account 

Indian Express

Context:- Author states that zero balance accounts are being netted with Re 1 to hide the zero balance status under the Pradhan Mantri Jan Dhan Yojana (PMJDY)

What is PMJDY?

It is a National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.

It was launched on 15th August 2015

Features of the scheme

  • Interest on deposit
  • Accidental insurance cover of Rs.1.00 lac
  • No minimum balance required.
  • Life insurance cover of Rs.30,000/-
  • Easy Transfer of money across India
  • Beneficiaries of Government Schemes will get Direct Benefit Transfer in these accounts thereby reducing leakages
  • After satisfactory operation of the account for 6 months, an overdraft facility (under this a person is able to withdraw more than what is currently in the bank account) will be permitted
  • Access to Pension, insurance products
  • Accidental Insurance Cover, RuPay Debit Card must be used at least once in 45 days.
  • Overdraft facility upto Rs.5000/- is available in only one account per household, preferably lady of the household.

Falsifying stats: Unethical practice

  • Crediting accounts with Re 1 to hide the zero balance status is unethical on the part of banks as this practice violates the principles of integrity, honesty and transparency
  • As per the investigation, account holders had no idea that their accounts have been credited with Re 1. In future, it could also lead to illegal deposition of funds without the knowledge of the account holders

Conclusion

Financial inclusion is necessary but not a sufficient condition for money to be in accounts. Zero-balance accounts are a good indicator that government needs to provide job and employment avenues to the poorest of the poor and when it is achieved, the accounts would no longer display a zero-balance status

 

[6]. Accountability of Justice 

Indian Express

Context:- Former Attorney General for India makes an argument for NJAC & talks about the false notion of primacy of judiciary

Superiority of Judiciary?

Author says that framers of our constitution did not intend to make judiciary superior to other two wings i.e. Legislative & Executive.

Judiciary was to act like a sentinel i.e. a watchdog to monitor any overstepping of boundaries by legislative or executive.

Following arguments are given by the present nominated RS member & former attorney general in this article,

  1. Separation of powers: All the 3 organs of government i.e. legislative, judiciary and the executive have their specific domains wherein there powers and functions have been listed under the constitution. Ample checks and balances have also been provided by the constitution to ensure that each organ works without overstepping its mark. In the case of appointment of judges, however, judiciary has seized both executive & legislative powers, as it decides how the judges will be appointed and finally appoints them too. Such a practice is against the principle of checks and balances that is necessary to maintain the democratic character of governance.
  2. No Accountability: Accountability of Judiciary is not similar to the executive though both organs derive their power from people. Presently, under the collegium system accountability lies neither with the executive nor with the judiciary due to the secretive nature of the appointments
  3. Elected agent of public interest: Interest of general public is associated with the administration of justice. The executive in lieu of being elected by the public itself, is an agent of its interest. So, it should have some kind of say in the appointment of judges
  4. Breach of President’s discretion: Constitution neither envisages nor provides for the primacy of the judiciary. So, collegium which consists of Chief Justice of India and 4 other judges can’t be a part of the basic structure. Moreover, Article 124(2), states

“Every Judge of the Supreme Court shall be appointed by the President by warrant under his hand and seal after consultation with such of the Judges of the Supreme Court and of the High Courts in the States as the President may deem necessary (President’s discretion) for the purpose and shall hold office until he attains the age of sixty five years: Provided that in the case of appointment of a Judge other than the chief Justice, the chief Justice of India shall always be consulted”

As we can see President’s discretion is curtailed via collegium because if he wants to consult other judges outside of the collegium who give a different opinion than the collegium, the decision of collegium is still binding upon him.

  1. Judicial review: Author says that in a democracy the principle of judicial review though important has a narrow scope because legislature has people’s voice behind it as it is directly elected by them. Unbridled use of judicial review would convert a democracy to judicial oligarchy where judges pass laws. In case of NJAC also, the law was unanimously passed by the legislature and judiciary while accepting the fallacies of collegium should have taken the opportunity to remedy it

Author goes on to suggest that,

  • Cases that question the validity of the constitutional amendmentsor interpretation of a constitutional amendment to be heard by a bench consisting of not less than 13 judges.

Article 145(3) states that a “minimum” of five judges are to sit for the purpose of deciding any case involving a substantial question of law pertaining to interpretation of the Constitution or a presidential reference under Article 143.

A minimum of five judges was prescribed when the total strength of judges was seven, which has increased to 31 now.

Conclusion

In a democracy, no organ can claim to be supreme. It is time that judiciary should also be reminded of its fallacies that have crept in its system. It is only after acceptance of the faults that one can proceed to correct them.

 

INTERNATIONAL

[1]. India hard sells NSG bid to China

 The Hindu

Context:- India discussed its bid for membership of the Nuclear Suppliers Group (NSG) with China

The bilateral talks on the issue were the first since India’s failed bid to acquire NSG membership in Seoul in June 2016

China is proposing a two-step formula for membership of non-NPT (Non-Proliferation Treaty) states

What is NSG?

It is a group of nuclear supplier countries that seek to prevent nuclear proliferation by controlling the export of materials, equipment and technology that can be used to manufacture nuclear weapons.

 Why India want to become a member of NSG?

  1. Technology Access: India has its own indigenously developed technology but to get its hands on state of the art technology that countries within the NSG possess, it has to become part of the group.
  2. Reducing dependency on fossil fuels: With India committed to reducing dependence on fossil fuels and ensuring that 40% of its energy is sourced from renewable and clean sources, there is a pressing need to scale up nuclear power production. This can only happen if India gains access to the NSG.
  3. No NPT: India could sign the nuclear non-proliferation treaty (NPT) and gain access to all this know-how but that would mean giving up its entire nuclear arsenal. Given that it is situated in an unstable and unpredictable neighbourhood India is unlikely to sign the NPT or accede to the Comprehensive Test Ban Treaty (CTBT) that puts curbs on any further nuclear tests.
  4. Commercialization: With access to latest technology, India can commercialize the production of nuclear power equipment. This, in turn will boost innovation and high tech manufacturing in India and can push economic and strategic benefits.

 For example, India has signed a civil nuclear energy co-operation pact with Sri Lanka. Currently, this entails training people in peaceful uses of nuclear energy, including use of radioisotopes, nuclear safety, radiation safety, nuclear security, radioactive waste management and nuclear and radiological disaster mitigation.

Should India get access to advanced nuclear technologies, it can start building updated versions of its own fast breeder reactor and sell it to countries such as Sri Lanka or Bangladesh. Bangladesh is currently looking at buying Russian reactors for power generation.

  1. Nuclear industry:Having the ability to offer its own nuclear power plants to the world means genesis of an entire nuclear industry and related technology development. This would give the Make in India programme a big boost.
  2. Blocking Pakistan’s entry:Should India get membership to the NSG, it can block Pakistan from its membership as entry into the grouping is by consensus only. This is one of the reasons why China is pushing to include Pakistan as well as pointing out that India as a non-signatory to the NPT cannot be a member.

Strong case for India’s membership of NSG

India’s contention is that its nuclear technologies are indigenously developed and it has a clean non-proliferation record unlike Pakistan whose non-proliferation record was tainted with the revelations that its nuclear scientist A.Q Khan sold nuclear technologies to countries such as North Korea.

  • China’s non-proliferation record too is tainted with allegations that it has helped Pakistan, but given its economic clout the country is unlikely to attract sanctions.

 

ECONOMY 

[1]. Urjit Patel stares at half-empty RBI board

The Hindu

Context:- Eight of 16 board positions nominated by Centre vacant

RBI Board

A full RBI board has members including

  • the Governor
  • four deputy governors,
  • two government officials as nominees – nominated by the government
  • the 10 directors from varied backgrounds – appointed by the government
  • one member each from the bank’s four local boards, which are also nominated by government

Of the four directors from the local boards, three positions are vacant

One of the deputy governor’s positions at the RBI has also become vacant after Dr. Patel was elevated as governor

The government nominees on the RBI’s central board comprise eminent personalities from various fields

What is a Bank Board Bureau (BBB)?

It is a body that selects top executives of state-run banks and helps lenders raise capital and develop business strategies.

The need for BBB

With a view to improve the governance of public sector banks, the government had decided to set up an autonomous Bank Board Bureau. The bureau will recommend for selection the heads of public sector banks and financial institutions and help banks in developing strategies and capital raising plans

Structure of BBB

The BBB will comprise of a Chairman and six more members of which three will be officials and three experts (of which two would necessarily be from the banking sector). The Search Committee for members of the BBB would comprise of the Governor, RBI and Secretary (FS) and Secretary (DoPT) as members.

Facts about BBB

  • The announcement of the Bank Board Bureau (BBB) was made in 2015-16 Budget Speech.
  • The BBB is a body of eminent professionals and officials, which replaced the Appointments Board for appointment of Whole-time Directors as well as non-Executive Chairman of PSBs.
  • Board also constantly engage with the Board of Directors of all the PSBs to formulate appropriate strategies for their growth and development.
  • Vinod Rai, former comptroller and auditor general of India, was named the first chairman of the Banks Board Bureau

 

INTERNATIONAL

[1]. India hard sells NSG bid to China

 The Hindu

Context:- India discussed its bid for membership of the Nuclear Suppliers Group (NSG) with China

The bilateral talks on the issue were the first since India’s failed bid to acquire NSG membership in Seoul in June 2016

China is proposing a two-step formula for membership of non-NPT (Non-Proliferation Treaty) states

What is NSG?

It is a group of nuclear supplier countries that seek to prevent nuclear proliferation by controlling the export of materials, equipment and technology that can be used to manufacture nuclear weapons.

 Why India want to become a member of NSG?

  1. Technology Access: India has its own indigenously developed technology but to get its hands on state of the art technology that countries within the NSG possess, it has to become part of the group.
  2. Reducing dependency on fossil fuels: With India committed to reducing dependence on fossil fuels and ensuring that 40% of its energy is sourced from renewable and clean sources, there is a pressing need to scale up nuclear power production. This can only happen if India gains access to the NSG.
  3. No NPT: India could sign the nuclear non-proliferation treaty (NPT) and gain access to all this know-how but that would mean giving up its entire nuclear arsenal. Given that it is situated in an unstable and unpredictable neighbourhood India is unlikely to sign the NPT or accede to the Comprehensive Test Ban Treaty (CTBT) that puts curbs on any further nuclear tests.
  4. Commercialization: With access to latest technology, India can commercialize the production of nuclear power equipment. This, in turn will boost innovation and high tech manufacturing in India and can push economic and strategic benefits.

 For example, India has signed a civil nuclear energy co-operation pact with Sri Lanka. Currently, this entails training people in peaceful uses of nuclear energy, including use of radioisotopes, nuclear safety, radiation safety, nuclear security, radioactive waste management and nuclear and radiological disaster mitigation.

Should India get access to advanced nuclear technologies, it can start building updated versions of its own fast breeder reactor and sell it to countries such as Sri Lanka or Bangladesh. Bangladesh is currently looking at buying Russian reactors for power generation.

  1. Nuclear industry:Having the ability to offer its own nuclear power plants to the world means genesis of an entire nuclear industry and related technology development. This would give the Make in India programme a big boost.
  2. Blocking Pakistan’s entry:Should India get membership to the NSG, it can block Pakistan from its membership as entry into the grouping is by consensus only. This is one of the reasons why China is pushing to include Pakistan as well as pointing out that India as a non-signatory to the NPT cannot be a member.

Strong case for India’s membership of NSG

India’s contention is that its nuclear technologies are indigenously developed and it has a clean non-proliferation record unlike Pakistan whose non-proliferation record was tainted with the revelations that its nuclear scientist A.Q Khan sold nuclear technologies to countries such as North Korea.

  • China’s non-proliferation record too is tainted with allegations that it has helped Pakistan, but given its economic clout the country is unlikely to attract sanctions.

 

ECONOMY 

[1]. Urjit Patel stares at half-empty RBI board

The Hindu

Context:- Eight of 16 board positions nominated by Centre vacant

RBI Board

A full RBI board has members including

  • the Governor
  • four deputy governors,
  • two government officials as nominees – nominated by the government
  • the 10 directors from varied backgrounds – appointed by the government
  • one member each from the bank’s four local boards, which are also nominated by government

Of the four directors from the local boards, three positions are vacant

One of the deputy governor’s positions at the RBI has also become vacant after Dr. Patel was elevated as governor

The government nominees on the RBI’s central board comprise eminent personalities from various fields

What is a Bank Board Bureau (BBB)?

It is a body that selects top executives of state-run banks and helps lenders raise capital and develop business strategies.

The need for BBB

With a view to improve the governance of public sector banks, the government had decided to set up an autonomous Bank Board Bureau. The bureau will recommend for selection the heads of public sector banks and financial institutions and help banks in developing strategies and capital raising plans

Structure of BBB

The BBB will comprise of a Chairman and six more members of which three will be officials and three experts (of which two would necessarily be from the banking sector). The Search Committee for members of the BBB would comprise of the Governor, RBI and Secretary (FS) and Secretary (DoPT) as members.

Facts about BBB

  • The announcement of the Bank Board Bureau (BBB) was made in 2015-16 Budget Speech.
  • The BBB is a body of eminent professionals and officials, which replaced the Appointments Board for appointment of Whole-time Directors as well as non-Executive Chairman of PSBs.
  • Board also constantly engage with the Board of Directors of all the PSBs to formulate appropriate strategies for their growth and development.

Vinod Rai, former comptroller and auditor general of India, was named the first chairman of the Banks Board Bureau.

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