Nayak Committee: Reviewing the governance of Boards of Banks in India - Budget & Economic Survey
Q. The Nayak Committee Report is regarding- Published on 06 Aug 15a. Reviewing the Non Performing Assets (NPAs) of Banks in India and suggesting measures to mobilize them.
b. Deregulation
c. Reviewing the governance of Boards of Banks in India.
d. Reviewing the efficacy of the new platform of RuPay (RuPay Cards) and suggest measures for its deeper penetration.
ANSWER: Reviewing the governance of Boards of Banks in India.
RBI setup this Committee to review the governance of Board of Banks in India. In Indian Government banks, Government owns >50% shares. Committee recommends that the Government should transfer its shares to Bank Investment Company (BIC), with functional autonomy. Then Government won’t be able to appoint directors as per its own wishes thus improving governance.
