What is the Financial Services Institutions Bureau (FSIB)?

About Financial Services Institutions Bureau (FSIB):

• What is it? It’s a government body set up under the Department of Financial Services.
• It replaced the Bank Board’s Bureau (BBB) which was declared an incompetent authority.
• Structure:
  • 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.
• The Primary role of FSIB:
  • To identify manpower capabilities and ensure proper selection of talent for senior positions at financial institutions owned by the government.
  • It is entrusted with making recommendations for the appointment of full-time directors and non-executive chairman of state-run financial services institutions.
  • The final decision on the FSIB recommendation would be taken by the Appointments Committee of the Cabinet headed by the Prime Minister.
• Other Mandates of FSIB:
  • It would also issue guidelines for selecting general managers and directors of public sector general insurance companies.
  • It will also be involved in formulating and developing business strategies for state-run banks and help them in their fund-raising plans.
  • It would also monitor and assess the performance of public sector banks, government-owned financial institutions and insurance companies.