The Chairman of public sector banks are selected by the

The correct answer is A, the Banks Board Bureau. It was set up in 2016 on the recommendation of the P.J. Nayak Committee, which argued that top appointments in public sector banks should not rest entirely with the government. The Bureau shortlists and recommends candidates for the posts of chairman and whole-time directors of PSBs. The final appointment is made by the government, through the Appointments Committee of the Cabinet.

• B) RBI: The RBI regulates banks and sets fit-and-proper norms, but it does not select PSB chairmen.
• C) Union Ministry of Finance: The Ministry approves appointments and handles the administrative side. The selection itself is routed through the BBB, so this is a half-truth.
• D) Management of the concerned bank: A bank's own management cannot pick its chairman. That would undercut the government-owned structure and the reform intent behind the BBB.

Core concept: separating ownership from professional appointments in PSB governance. For Mains (GS-III, banking reforms), link this to the debate on bank recapitalisation, accountability and autonomy. The Bureau's role has been revised over time, so check the current framework before relying on it.

Trap: Students pick C because the government does make the final appointment. The question asks who selects, and the selection step belongs to the BBB.