BBB Full Form

What is the full form of BBB?

The complete form of BBB is 'Banks Board Bureau. In 2016, the Banks Board Bureau was constituted. It was a massive step towards reforms of banking in general and provided a new and improved form of structure to the public sector banks mainly. It was so illustrious in the news in 2019 when India celebrated its Fifty years of Bank nationalization. This Bureau was set up to develop and implement appropriate methods to appoint, extend, and terminate members of the Bureau in many areas, such as public sector insurance, public sector banks, companies, and financial institutions.

This Story also Contains

1. What is the full form of BBB?
2. What is the Banks Board Bureau (BBB)?
3. Composition of Banks Board Bureau
4. Functions of Banks Board Bureau

What is the Banks Board Bureau (BBB)?

• Banks Board Bureau (BBB) is an autonomous body of the Central Government for self-governance.

• The Banks Board Bureau (BBB) headquarters is in the Central Office of the Reserve Bank of India in Mumbai, which started functioning on April 1, 2016.

• It is an advisory authority comprising renowned professionals and officials for improving the management of Public sector banks.

• Banks Board Bureau is a part of the seven-point strategy of the Indradhanush Mission that aims to modernize the Public Sector Banks.

• It has the freedom to govern and control its affairs, which has a body of officials and experienced professionals for the Public Sector Banks.

• The Bureau is a non-profitable autonomous body that was initially expected to meet its expenses with the support from the Reserve Bank of India and distribute the costs among the Public Sector Banks.

Composition of Banks Board Bureau

• Based on recommendations of the Nayak committee, which RBI appointed, the Union Government announced the Banks Board Bureau to rebuild the Public Sector Bank in August 2015.

• The first Banks Board Bureau (BBB) was constructed in February 2016 under the chairmanship of General Vinod Rai, who was a former Comptroller and Auditor.

• The Banks Board Bureau was a replacement for the Appointments Board of the Government.

• The main reason for establishing the Banks Board Bureau was to foreshadow a new era of authority and business strategies for state-owned banks to place them with privileged private sector peers.

• The Banks Board Bureau includes the Chairman, three members from the office,i.e., the Secretary of the Department of Financial Services, the Secretary of the Department of Public Enterprises, and the Deputy Governor of the Reserve Bank of India. It also includes a team of five expert members, with two from the private sector.

Functions of Banks Board Bureau

The comprehensive plan of the Banks Board Bureau is the administration of state-owned lenders. The functions of includes Banks Board Bureau are as follows:

• BBB assists Public Sector Banks in structuring their business strategies.

• It provides strategies for raising capital.

• It also provides strategies to the bank for dealing with bad loans and stressed assets issues.

• Its strategies to raise capital through financial instruments and methods.

• It provides recommendations to the government on top-level appointments like non-Executive Chairman and full-time Directors in Public Sector Banks.

• It suggests plans for uniting and merging banks when they are trapped in the problem of high collective growth NPAs.

• It advises the Central Government on matters related to appointments, confirmation or extension of tenure, and the termination of services of the Directors of nationalized banks.

• It builds a data bank that contains data related to the performance of nationalized banks and their officers.

• It advises the Central Government to formulate and enforce the code of conduct and ethics for managerial personnel in the nationalized banks.