The Chairmen of public sector banks are selected by the
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Answer: A. The Banks Board Bureau (set up in 2016) selects and recommends heads, including chairmen and managing directors, of public sector banks. The Government then makes the formal appointment.
Watch for: Since the Finance Ministry issues the appointment, students think it also does the selection.
Why the other options are wrong
- B. Wrong because the RBI regulates banks but does not select PSB chairmen.
- C. Wrong because the Finance Ministry appoints on the Bureau's recommendation; selection is by the Bureau.
- D. Wrong because the bank's own management does not choose its chairman.
Source to check: Banks Board Bureau official website (banksboardbureau.org.in); Department of Financial Services notification (2016)
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.