Correct Option
Option (b):
Statement 1 is incorrect. The Governor of the Reserve Bank of India (RBI) was not the Chairman of the Banks Board Bureau (BBB). The BBB was headed by an independent Chairperson, typically a former banker or bureaucrat, appointed by the government.
Statement 2 is correct. A primary function of the BBB was to recommend candidates for the appointment of whole-time directors and non-executive chairpersons in Public Sector Banks (PSBs) and Financial Institutions (FIs).
Statement 3 is correct. The BBB was also tasked with assisting PSBs in developing strategies for growth, capital raising plans, and various other governance reforms.
Therefore, statements 2 and 3 are correct, while statement 1 is incorrect. This makes option (b) the correct answer.
Incorrect Options
Option (a) is incorrect because Statement 1, which asserts the RBI Governor as BBB Chairman, is factually inaccurate.
Option (c) is incorrect because it excludes Statement 2, which accurately describes a core function of the BBB regarding the selection of heads for PSBs.
Option (d) is incorrect because it includes Statement 1, which is an an incorrect assertion about the chairmanship of the BBB.
Note: The Banks Board Bureau (BBB) was replaced by the Financial Services Institutions Bureau (FSIB) in 2022, which continues to perform similar functions for Public Sector Banks and Financial Institutions.