The full form of BBB is Banks Board Bureau.
Banks Board Bureau (BBB) Explained
The Banks Board Bureau (BBB) was an autonomous body in India established to improve the governance of Public Sector Banks (PSBs). While it has been dissolved, understanding its functions and purpose remains relevant.
Purpose and Functions of the BBB
- Appointments: The BBB was responsible for recommending candidates for the appointment of Whole-Time Directors (WTDs) and non-executive chairpersons of PSBs and financial institutions.
- Policy Advice: It advised the central government on matters relating to appointments, confirmation or extension of tenure, and termination of services of directors of PSBs.
- Governance Improvement: The Bureau aimed to improve corporate governance in PSBs by suggesting ways to enhance their performance and strategic planning.
- Development of Human Resources: The BBB played a role in developing a suitable performance appraisal system for PSBs.
Dissolution of the BBB
In 2022, the Indian government dissolved the Banks Board Bureau. Its functions have been transferred to the Financial Services Institutions Bureau (FSIB). Therefore, while the historical significance of the BBB remains, the FSIB is now the relevant body for appointments and governance in the financial sector.