Official Answer Key & Detailed Solution
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Correct Answer: Option (B) — 2 and 3 only
Concept & Option Breakdown
Standard Reference VerifiedStatement 1 is incorrect: The Chairman of the Banks Board Bureau (BBB) was an eminent professional or former senior public administrator (e.g., former CAG Vinod Rai was its first Chairman), not the RBI Governor. Statement 2 is correct: BBB was established to recommend candidates for whole-time directors and non-executive chairpersons of Public Sector Banks (PSBs) and public financial institutions. Statement 3 is correct: BBB was tasked with advising PSBs on corporate governance reforms, strategies, capital-raising plans, and leadership development. (Note: BBB has since been replaced by the Financial Services Institutions Bureau - FSIB).
The RBI acts as an independent regulator of banks; placing the RBI Governor as head of the body selecting bank executives would create a conflict of interest. Statement 1 is false.
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