The Chairmen of public sector banks are selected by the
CUnion Ministry of Finance
DManagement of concerned bank
Correct Answer: Option A
Explanation
1. The selection process for the heads (like Chairmen, MDs, CEOs) of public sector banks (PSBs) in India has evolved over time.
2. In 2016, the Government of India established the Banks Board Bureau (BBB) as an autonomous body.
3. One of the key mandates of the BBB was to recommend candidates for the positions of whole-time directors and non-executive chairmen in PSBs and state-owned financial institutions.
4. The BBB shortlists and interviews candidates, and then recommends names to the government (specifically the Appointments Committee of the Cabinet - ACC, advised by the Union Ministry of Finance) for final approval.
5. Therefore, the initial and crucial stage of selection and recommendation for Chairmen of public sector banks is done by the Banks Board Bureau.
6. The Reserve Bank of India (RBI) regulates the banks but does not directly select their chairmen. The Union Ministry of Finance is involved in the final appointment process based on BBB recommendations. The Management of the concerned bank does not select its own Chairman.
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