Banks Board Bureau (BBB) will assist the government in developing a code of conduct for managerial personnel as well as training programmes for officers.
As part of its extended role, the board, headed by former CAG Vinod Rai, has also been entrusted with the task of advising the government on extension of tenure or termination of services of the board of directors in state-run banks and financial institutions.
The Banks Board Bureau said it will "build a data bank containing data relating to the performance of PSBs/FIs and its officers."
Further, it will also advise government on the formulation and enforcement of a code of conduct and ethics for managerial personnel and on evolving suitable training and development programmes for officers in PSBs/FIs.
The four-member panel will be responsible for the selection and appointment of Board of Directors in PSBs and FIs (Whole-time Directors and Non-Executive Chairman), BBB said in a statement.
The board will also advise government on matters relating to appointments, confirmation or extension of tenure and termination of services of the Board of Directors.
It would also advise the government on the desired structure at the Board level and for senior management personnel in PSBs and Financial Institutions.
BBB, which came to existence in April, was originally tasked to recommend names for chiefs of PSBs and FIs and help state-owned lenders in developing strategies and capital raising plans with a view to improve governance.
The body helps banks to develop a robust leadership succession plan for critical positions that would arise in future through appropriate HR processes, including performance management systems.
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