The Ministry of Finance has notified the establishment of a Financial Services Institutions Bureau (FSIB) for the purpose of recommending persons for appointment as whole-time directors and non-executive chairpersons on the Boards of financial services institutions and for advising on certain other matters relating to personnel management in these institutions.
As per a notification issued on Friday, the policy relating to its functions and composition, nomination of its members, and its management, funding and methodology is set out below.
“(a) To recommend persons for appointment as whole-time directors (WTDs) and non-executive chairpersons (NECs) on the Boards of Directors in Public Sector Banks, financial institutions and Public Sector Insurers (hereinafter referred to as “PSBs”, “FIs” and “PSIs” respectively); (b) To advise the Government on matters relating to appointments, transfer or extension of term of office and termination of services of the said directors; (c) To advise the Government on the desired management structure at the Board level for PSBs, FIs and PSIs; (d) To advise the Government on a suitable performance appraisal system for WTDs and NECs in PSBs, FIs and PSIs; (e) To build a databank containing data related to the performance of PSBs, FIs and PSIs; (f) To advise the Government on formulation and enforcement of a code of conduct and ethics for whole-time directors in PSBs, FIs and PSIs; (g) To advise the Government on evolving suitable training and development programmes for management personnel in PSBs, FIs and PSIs; (h) To help PSBs, FIs and PSIs in terms of developing business strategies and capital raising plan etc.; (i) To carry out such process and draw up a panel for consideration of competent authority for any other bank, financial institution or insurer for which the Government makes a reference, after consultation with the regulator concerned with that bank, financial institution or insurer.”
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