BBB seeks wider  mandate from govt

New Delhi : Expressing displeasure over lack of communication between Banks Board Bureau (BBB) and the finance ministry, Vinod Rai, former CAG who now heads the advisory body, has said that most of BBB’s recommendations have not received due attention from the government and it has been merely working as an appointment board since inception.

It has also sought wider mandate from the government including advising the government on public sector bank (PSB) consolidation in the least disruptive manner.

The comments of BBB come on the heels of the Reserve Bank of India demanding more powers to deal with frauds in the banking system.

“If the government does indeed desire to make the Bureau address issues of governance around PSBs in a holistic manner and make its output effective, there is a need for an organic relationship between government and the Bureau,” it said in its compendium of recommendations.

Prime Minister Narendra Modi in 2016 approved the constitution of BBB as a body of eminent professionals and officials to make recommendations for appointment of whole-time directors as well as non-executive chairmen of PSBs.

“The Bureau, as a body of experts on public sector banking, would be able to provide greater utility to the finance minister on matters relating to the governance and performance of PSBs, if there were to be greater organic linkage and dialogue with the finance ministry. At present the body is merely functioning as an appointment board,” it said.