The Financial Services Institutions Bureau (FSIB) is responsible for making recommendations for the appointment of full-time directors and non-executive chairman of state-run financial services institutions. Which entity was responsible for this function before FSIB?

Solution

Financial Services Institutions Bureau (FSIB) is a government body set up under the Department of Financial Services. The board will be entrusted with making recommendations for the appointment of full-time directors and non-executive chairman of state-run financial services institutions. The government has transformed Banks Board Bureau (BBB), the headhunter for directors of state-owned banks and financial institutions, into FSIB by making some amendments. The establishment of FSIB was approved by the Appointments Committee of the Cabinet (ACC) headed by the Prime Minister. FSIB would be headed by a chairman, a central government nominee. The board would comprise the Secretaries of the DFS, the chairman of IRDAI, and a deputy governor of the RBI. Additionally, it will have three part-time members who are experts in banking and three more from the insurance sector. At present, Bhanu Pratap Sharma, the chairman of BBB, is the chairman of FSIB.     FSIB’s first recommendation has been the appointment of Mr. Rajkiran Rai G as the managing director (MD) of National Bank for Financing Infrastructure and Development (NaBFID). He was appointed in August 2022.