2019 GS Paper I, all questions
UPSC Prelims 2019 · GS Paper I
Question 73: Economy and Social Development
The Chairmen of public sector banks are selected by the
aBanks Board Bureau
bReserve Bank of India
cUnion Ministry of Finance
dManagement of concerned bank
AnswerUPSC’s answer is (a).
At the time of the question, the Banks Board Bureau was the body that recommended the selection of whole-time directors and chairmen of public sector banks, and the Government appointed on its recommendation. So the selection was not made by the RBI, by the Finance Ministry on its own, or by the management of the bank concerned.
Why each option is right or wrong
- (a) Correct: the Banks Board Bureau recommended chairmen of public sector banks.
- (b) The RBI regulates banks but did not select PSB chairmen.
- (c) The Ministry made the appointment but on the Bureau's recommendation.
- (d) A bank's management did not select its own chairman.
Worth knowing: The Banks Board Bureau was replaced by the Financial Services Institutions Bureau in 2022.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2019, General Studies Paper I, Series A. The paper on upsc.gov.in.