As part of Banking Reforms, Banks Board Bureau was constituted. It is entrusted to improve the commercial performance and governance process of state-owned banks, by appointing the right candidates to lead these institutions.
BBB is responsible for selection of Heads of PSBs, and for Fulltime Directors and Non-Executive Chairman on the Boards of PSBs.
Later, BBB is also expected to help PSBs in developing strategies and capital raising plans.
Apart from the Chairman, Vinod Rai (ex-CAG), the Bank Board Bureau comprises three Members with specialised field expertise. While, three ex-officio members of the Bureau are RBI Deputy Governor; Secretary, Department of Financial Services and Secretary, Department of Public Enterprises.