It replaces the earlier body Bank Board Bureau. The new framework was proposed by the Department of Financial Service, Ministry of Finance.

What are the main functions Financial Services Institutions Bureau or FSIB?

1. The Financial Services Institutions Bureau will select the chiefs of public sector banks (PSBs) and insurance companies.
2. The FSIB will have the clear mandate to issue guidelines and select general managers and directors of Government non-life insurance commpanies, general insurance companies and Financial Institutions (FIs).
3. FSIB will be the single entity for making recommendations for appointments of WTD (Whole-time Director) and NEC (Non-executive Chairman) in Public Sector Banks, India Private Limited company and Financial Institutions.
4. To provide advice to the government on the ideal management structure for PSBs, FIs, and PSIs at the board level.
5. To provide guidance to the government on an effective system for WTDs and NECs in PSBs, FIs, and PSIs.
6. To create a database with information about PSB, FI, and PSI performance.
7. To provide advice to the government on the creation and implementation of ethics and conduct code for full-time directors in PSBs, FIs, and PSIs.
8. To advise the government on developing acceptable management training and development programs for PSB, FL, and PSI personnel.
9. To help PSBs, FIs, and PSIs build business plans and capital raising strategies, among other things.
10. To identify manpower capabilities and ensure proper selection of talent for senior positions at financial institutions owned by the government.
11. To encourage the best corporate governance practices in financial institutions serving the public sector.
12. To provide advice to the government on matters pertaining to the abovementioned directors’ nominations, transfers, extensions of their terms of office, and termination of their services.

The final decision on the FSIB recommendation would be taken by the Appointments Committee of the Cabinet (ACC) headed by the Prime Minister.

 

FSIB consists of a chairperson and members.

1 Chairperson : Who is to be nominated by the Central Government. He shall be a retired official from the banking sector or a regulatory institution, a business person of repute with sufficient knowledge of the financial sector, or a person with at least 25 years of experience in public administration with experience in banking and the financial sector.
 

The ACC has approved the appointment of Bhanu Pratap Sharma as Initial chairperson of FSIB for two years. He was the former Chairman of BBB.

Members (ex-officio)

• The Secretary in charge of the Department of Financial Services:
• The Secretary in charge of the Department of Public Enterprises;
• The Chairperson of the Insurance Regulatory and Development Authority of India (IRDAI), and if the office of the Chairperson is vacant, the senior-most whole-time member of IRDAI;
• A Deputy Governor of the Reserve Bank of India (RBI);
• Members (part-time, non-government)
• Three persons with subject matter knowledge relating to PSBs and FIs, are to be nominated by the central government.

What is the Banks Board Bureau (BBB)?

The Banks Board Bureau (BBB) was constituted on the recommendations of ‘The Committee to Review Governance of Boards of Banks in India, May 2014  also known as P. J. Nayak committee.
 

The government, in 2016, approved the constitution of the BBB to make recommendations for appointment of whole-time directors as well as non-executive chairpersons of Public Sector Banks (PSBs) and state-owned financial institutions.