Economy
2019
Banking in India

The Chairmen of public sector banks are selected by the

A.Banks Board Bureau
D.Management of concerned bank
B.Reserve Bank of India
C.Union Ministry of Finance

Correct Answer: Option A

The Banks Board Bureau (BBB) recommends the selection and appointment of whole-time Directors (WTDs) and non-executive Chairmen (NECs) of Public Sector Banks (PSBs).

The Union Finance Minister's Budget Speech of February 2015 highlighted the establishment of an autonomous Bank Board Bureau to "search and select heads of Public Sector banks and help them in developing differentiated strategies".

While the BBB recommends candidates, the final appointment decision rests with the Appointments Committee of the Cabinet (ACC), not the RBI or a single ministry like the Ministry of Finance.

Hence, option A is the correct answer.

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