2022 GS Paper I, all questions

UPSC Prelims 2022 · GS Paper I

Question 64: Economy and Social Development

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

  1. 1.The Governor of RBI is the Chairman of BBB.
  2. 2.BBB recommends for the selection of heads for Public Sector Banks.
  3. 3.BBB helps the Public Sector Banks in developing strategies and capital raising plans.

Select the correct answer using the code given below :

a1 and 2 only
b2 and 3 only
c1 and 3 only
d1, 2 and 3

AnswerUPSC’s answer is (b).

The Banks Board Bureau was set up in 2016 as an autonomous body to improve governance of public sector banks. It recommended the selection of whole-time directors and heads of public sector banks, and advised banks on business strategy and capital-raising plans. Its chairman was an eminent professional appointed by the government, not the RBI Governor, so statement 1 is false. Statements 2 and 3 are correct.

  • 1. The chairman was an eminent professional appointed by the government, not the RBI Governor.
  • 2. It recommended selection of heads of public sector banks.
  • 3. It helped banks with strategy and capital-raising plans.

How you could have got this

  1. If you were sure statement 1 is not correct, (a), (c) and (d) go: each of them includes 1.

    What you needed to know: The chairman was an eminent professional appointed by the government, not the RBI Governor.

Only (b) is left. You didn’t need statements 2 or 3.

Which options go is worked out from UPSC’s key and the options, not by a model.

Why each option is right or wrong
  • (a) Wrong. Statement 1 is false: the RBI Governor did not chair it.
  • (b) Correct. It recommended appointments and advised on strategy and capital plans.
  • (c) Wrong. Statement 1 is false.
  • (d) Wrong. Statement 1 is false.

Worth knowing: The Banks Board Bureau was wound up in 2022 and replaced by the Financial Services Institutions Bureau, which now makes these recommendations.

Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2022, General Studies Paper I, Series A. The paper on upsc.gov.in.