With reference to the Banks Board Bureau (BBB)’, which of the following statements are correct?

1. The Governor of RBI is the Chairman of BBB.

2. BBB recommends for the selection of heads for Public Sector Banks.

3. BBB helps the Public Sector Banks in developing strategies and capital raising plans.

Select the correct answer using the code given below:

The correct answer is 2 and 3 only.

Let us analyze each statement step-by-step to understand why this option is correct:

Statement 1 is incorrect: The Banks Board Bureau (BBB) is an autonomous advisory body of the Government of India. The Chairman of the BBB is not the Governor of the Reserve Bank of India (RBI). Instead, the BBB consists of a Chairman who is typically a prominent business leader or a retired high-ranking government official, along with other distinguished members from the banking and financial sectors appointed by the government.

Statement 2 is correct: One of the primary functions of the BBB is to recommend candidates for the selection of heads (such as Managing Directors and Chief Executive Officers) and full-time directors for Public Sector Banks (PSBs), as well as other public sector financial institutions.

Statement 3 is correct: Apart from recommending candidates for top leadership positions, the BBB also assists public sector banks in developing strategies for growth, improving corporate governance, and formulating robust capital raising plans to strengthen their financial health.

Therefore, since statements 2 and 3 are correct while statement 1 is incorrect, the correct option is "2 and 3 only".