The Committee was constituted in 2014 to examine the working of banks’ boards, review RBI guidelines on bank ownership and representation in the board, and investigate possible conflicts of interest in board representation.
Key recommendations of the Committee: Ownership of Public Sector Banks (PSBs): All PSBs should be incorporated under the Companies Act, 2013. The government should transfer its holdings in PSBs to a Bank Investment Company (BIC). Some of the constraints faced by PSBs could be removed if the government reduces its holding below 50%.
