FSIB composition and funding
- July 11, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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FSIB composition and funding
Subject : Economy
Section: Regulation
About the Financial Services Institutions Bureau (FSIB)
- The Cabinet Appointments Committee (ACC) has passed a government resolution to establish the Financial Services Institutions Bureau (FSIB) in place of the Banks Board Bureau (BBB).
- All assets, interests and liabilities of the BBB now stand transferred to the FSIB
- The new framework was proposed by the Department of Financial Service, the Ministry of Finance.
- Mandates:
- FSIB will be the single entity for making recommendations for appointments of whole time directors (WTDs) and nonexecutive chairpersons (NEC) at public sector banks (PSBs), public sector insurers (PSI) and financial institutions (FIs).
- It will also advise the government on extension of terms and even termination of services of WTDs and NECs at the financial services institutions.
- The FSIB will also recommend a performance appraisal system for WTDs and NECs at PSBs, FIs and PSIs
- FSIB will also advise the government on formulation and enforcement of a code of conduct and ethics for WTDs and NECs.
- It will build a database on the performance of PSBs, FIs and PSIs.
- The FSIB will help PSBs, FIs and PSIs develop business strategies and capital raising plans.
- The FSIB will advise the government on the desired management structure at PSBs, FIs and PSIs.
- It will also advise the government on evolving training and development programmes for management personnel in PSBs, FIs and PSIs.
- Composition:
- 11 members including chairperson –nominated by the Centre
- First chairperson– Bhanu Pratap Sharma, a former Secretary to the Department of Personnel & Training (DoPT) for 2 years.
- Ex officio members-
- Secretaries to the Department Financial Services (DFS) and the Department of Public Enterprises
- IRDAI chairperson.
- A Deputy Governor of RBI
- Part time members
- three persons with subject matter knowledge relating to PSBs and FIs will be nominated as part time members,
- three persons with subject matter knowledge relating to PSIs are to be nominated as part time members on the insurance front.
- The Department of Financial Services shall first carry out necessary modifications in the Nationalised Banks (Management and Miscellaneous Provisions) Scheme of 1970/1980 (as amended).
- Expenditure-For each financial year, the funds will be contributed by each of the three categories of financial service institutions (PSBs, FIs and PSIs) in proportion to the total number of respective vacancies of WTDs and NECs at the beginning of the financial year.
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