Q64 · UPSC Prelims 2022 · Set A · Economy

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With reference to the 'Banks Board Bureau (BBB)', which of the following statements are correct?1.The Governor of RBI is the Chairman of BBB.2.BBB recommends for the selection of heads of Public Sector Banks.3.BBB helps the Public Sector Banks in developing strategies and capital raising plans.Select the correct answer using the code given below:

A 1 and 2 only
B 2 and 3 only
C 1 and 3 only
D 1, 2 and 3

Correct answer: (b) 2 and 3 only

Explanation

  1. A

    1 and 2 only

    1 and 2 only. The RBI Governor is not the BBB chair.

  2. B

    2 and 3 only

    2 and 3 only. BBB recommended PSB heads and advised on strategy and capital plans. Chair was a separate appointee (later FSIB).

  3. C

    1 and 3 only

    1 and 3 only. Statement 1 fails.

  4. D

    1, 2 and 3

    All three. Governor-as-chair is false.

Summary. Official key is (b) 2 and 3 only. Banks Board Bureau selected/recommended whole-time directors of public sector banks and helped with strategies and capital raising. It was not chaired by the RBI Governor.

Same topic · past papers

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These previous-year questions sit on the same topic. Open one to practise the earlier ask.

  1. 2020 · Q62 · General Studies · 2 marks

    What is the importance of the term "Interest Coverage Ratio" of a firm in India? 1. It helps in understanding the present risk of a firm that a bank is going to given loan to. 2. It helps in evaluating the emerging risk of a firm that a bank is going to give loan to. 3. The higher a borrowing firm's level of Interest Coverage Ratio, the worse is its ability to service its debt. Select the correct answer using the code given below

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