Which of the following statement(s) is/are correct about the ‘Financial Services Institutions Bureau’?
- It was established upon the proposal of the Department of Financial Services.
- It has replaced the erstwhile Banks Board Bureau to select the chiefs of public sector banks and public sector insurance companies.
Select the correct codes from below
Explanation - Recently, the Appointments Committee of the Cabinet (ACC) has approved a government resolution for establishing the Financial Services Institutions Bureau (FSIB).
FSIB is established in place of the Banks Board Bureau (BBB), to select the chiefs of public sector banks (PSBs) and insurance companies. The ACC also approved the appointment of Bhanu Pratap Sharma (former Chairman BBB), as initial Chairperson of FSlB for a 2-year term. The Delhi High Court had struck down the BBB's power to select directors of public sector (PSU) general insurance companies in 2021. The government started implementing the verdict by cancelling all appointments of then-serving BBB-selected directors. After the verdict, the selection of top officials of PSU insurance companies was put on hold.
The new framework was proposed by the Department of Financial Services (DFS), Ministry of Finance.
Explanation - Recently, the Appointments Committee of the Cabinet (ACC) has approved a government resolution for establishing the Financial Services Institutions Bureau (FSIB).
FSIB is established in place of the Banks Board Bureau (BBB), to select the chiefs of public sector banks (PSBs) and insurance companies. The ACC also approved the appointment of Bhanu Pratap Sharma (former Chairman BBB), as initial Chairperson of FSlB for a 2-year term. The Delhi High Court had struck down the BBB's power to select directors of public sector (PSU) general insurance companies in 2021. The government started implementing the verdict by cancelling all appointments of then-serving BBB-selected directors. After the verdict, the selection of top officials of PSU insurance companies was put on hold.
The new framework was proposed by the Department of Financial Services (DFS), Ministry of Finance.