S Ramann: New Chairman and Managing Director of SIDBI
The Government of India recently appointed S Ramann as the Chairman and Managing Director of Small Industries and Development Bank of India.
About the Appointment
- The appointment is for a period of three years.
- The name of the new Chairman and Managing Director was recommended by Banks Board Bureau.
Banks Board Bureau
- It is an autonomous body of Government of India. It is an advisory body.
- It is tasked to improve governance of Public sector banks. The Banks Board Bureau recommends selection of chiefs of government owned banks and financial institutions.
- It assists banks with the strategies to deal with non-performing assets and bad loans.
- It recommends the top level appointments of financial institutions (includes non-banking) to the GoI.
- The Banks Board Bureau was set up in 2016.
- It works towards reforms in Public Sector Banks as recommended by P J Nayak Committee.
P J Nayak Committee
The P J Nayak Committee was set up in 2014 by the Reserve Bank of India. The committee reviewed the governance of board of banks. The recommendations made by the committee are as follows
- Repeal the Bank Nationalisation Act, 1970, SBI Subsidiaries Act and SBI Act. This was recommended as these acts required the Government to have above 50% shares in the banks.
- After repealing the above act, the GoI should set up Bank Investment Company (BIC). The shares of the Government in the banks should be transferred to the BIC.
S Ramann is currently the CEO of National E-Governance Services Limited. The National E-Governance is the first Information Utility of India. He is a 1991 batch Indian Audit and Accounts Service Officer.