It is an entity established within the Department of Financial Services by the government. It superseded the Bank Board’s Bureau (BBB), which was deemed ineffective.
Structure
- FSIB will be led by a chairman appointed by the central government.
- The board will consist of the Secretaries of the DFS, the chairman of IRDAI, and a deputy governor of the RBI.
- Furthermore, it will include three part-time members with expertise in banking and three others from the insurance sector.
The Primary role of FSIB
- Its mandate includes assessing manpower capabilities and facilitating the appropriate selection of talent for senior roles within government-owned financial institutions.
- FSIB is responsible for proposing appointments of full-time directors and non-executive chairpersons for state-run financial services institutions.
- The ultimate decision regarding FSIB’s recommendations rests with the Appointments Committee of the Cabinet, chaired by the Prime Minister.
Other Mandates of FSIB
- Additionally, it will establish criteria for the selection of general managers and directors within public sector general insurance companies.
- Furthermore, it will contribute to the formulation and enhancement of business strategies for state-run banks, aiding them in fundraising endeavors.
- Moreover, it will oversee and evaluate the performance of public sector banks, government-owned financial institutions, and insurance companies.
MCQ for Prelims
Q.1) With reference to the ‘Banks Board Bureau (BBB)’, which of the following statements are correct? (2022)
- The Governor of RBI is the Chairman of BBB.
- BBB recommends for the selection of heads for Public Sector Banks.
- BBB helps the Public Sector Banks in developing strategies and capital raising plans.
Select the correct answer using the code given below:
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
Q.2) Consider the following statements:
- The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
- Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest.
- The Governor of the RBI draws his power from the RBI Act.
Which of the above statements are correct? (2021)
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
FAQs
Q: What is the Financial Service Institutions Bureau (FSIB)?
A: The Financial Service Institutions Bureau (FSIB) is a regulatory body responsible for overseeing financial service providers, such as banks, credit unions, insurance companies, and other financial institutions. It ensures compliance with laws, regulations, and standards to maintain the stability and integrity of the financial system.
Q: What is the primary role of FSIB?
A: The primary role of FSIB is to protect consumers and investors by promoting fair and transparent practices within the financial services industry. It accomplishes this by monitoring and enforcing compliance with laws and regulations, investigating complaints, and providing educational resources to the public.
Q: How does FSIB benefit consumers?
A: FSIB plays a crucial role in safeguarding consumers’ interests by ensuring that financial service providers operate ethically and responsibly. Through regulatory oversight, FSIB helps prevent fraudulent activities, maintains the stability of financial markets, and promotes access to safe and affordable financial products and services.
Q: How does FSIB ensure compliance from financial institutions?
A: FSIB employs a variety of regulatory tools and mechanisms to ensure compliance from financial institutions. These include conducting regular examinations, audits, and inspections, issuing guidelines and directives, imposing fines and penalties for violations, and collaborating with other regulatory agencies and law enforcement authorities.
Q: How can individuals contact FSIB for assistance or to report a concern?
A: Individuals can contact FSIB through its official website, hotline, or local offices. FSIB provides various channels for reporting concerns, such as fraud, unfair practices, or regulatory violations. Additionally, FSIB offers educational materials and resources to help consumers make informed financial decisions and understand their rights and protections.
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