Bank Board Bureau

What are Bank Board Bureau and the Insolvency and Bankruptcy Code (IBC)?

Insolvency and Bankruptcy Code (IBC)

As an autonomous body of the Government of India, the Banks Board Bureau (BBB) is responsible for finding and selecting appropriate board members for public banks, financial institutions, and insurance companies as well as recommending measures to improve corporate governance. As part of its mandate, Bank Board Bureau is responsible for: 

The selection and appointment of the Board of Directors in Nationalised Banks, Financial Institutions and Public Sector Insurance Companies (Whole Time Directors and Chairman); Advising the Central Government on the appointment, confirmation, extension and termination of mandated institution directors; Advising the Central Government on the desired management structure of mandated institutions and to check the Insolvency And Bankruptcy Code (IBC), including the Board of Directors and senior management;

Advising the Central Government on an appropriate performance appraisal system for mandated institutions;

Building a data bank containing information about the performance of mandated institutions and their officers;

Advising the Central Government on the formulation and enforcement of a code of conduct and ethics for managerial personnel.

Assist the Central Government in developing appropriate training and development programs for managerial personnel in mandated institutions

Assisting banks in developing business strategies and capital-raising plans;

Other work assigned by the Government in consultation with the Reserve Bank of India.

On March 23, 2016, the Central Government notified the amendments to the Nationalized Banks (Management and Miscellaneous Provisions) Scheme, 1980, which outlines the composition and functions of the Banks Board Bureau. Based on this, the Bureau began operating as an autonomous recommendatory body on April 1, 2016.

Its objective is to bring about governance reforms in Public Sector Banks (PSBs) in accordance with the recommendations of the P.J. Nayak Committee.

The Mumbai Banks Board Bureau is headed by Bhanu Pratap Sharma (since 2018). [5] It is located in the RBI's Byculla Office.

Insolvency and Bankruptcy Board of India was established on 1st of October 2016 to regulate and counter various bad loan cases reported by various creditors, including Indian banks. As part of the Insolvency and Bankruptcy Code, 2016, the IBBI regulates the profession and insolvency and bankruptcy processes.

It governs Insolvency Resolution Professionals, Insolvency Professional Agencies, and Information Utilities. According to the Insolvency and Bankruptcy Code, 2016, it enacts and enforces rules to resolve corporate insolvency, corporate liquidation, individual insolvency, and individual bankruptcy. By amending any law under the IBC to suit the current challenges, it assists with the implementation of the IBC's provisions. It works to resolve any insolvency for corporations, individuals and partnership firms in a timely manner to maximize the value of the insolvent entity and to pay back the due amount.

Insolvency and bankruptcy are administered by the IBBI in the country. Among its duties are registering insolvency professionals' agencies and certifying and monitoring insolvency resolution professionals. As well as creating information utilities, IBBI is responsible for renewing them as needed. According to IBBI rules, agencies can register as insolvency professionals or professionals can become certified as insolvency resolution professionals if they meet minimum eligibility requirements. These agencies and professionals may also be charged fees or other charges. These regulations ensure that they function properly and in accordance with the law.

Moreover, IBBI ensures that any Insolvency and Bankruptcy Code, 2016 is levied within the shortest possible time to maximize the gain from debtors' assets. During audits and inspections of debtors' assets and creditors' claims, they are responsible for performing audits and inspections. Additionally, they specify the regulations for collecting and storing data by various information utilities and provide proper access to such data according to stakeholder needs. Communities can also be formed as needed to disseminate information in a case. Until the case is resolved, they are working to promote transparency among stakeholders.

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