PMO is examining a proposal to replace the Banks Board Bureau (BBB) with a new body that would operate as a holding company to usher in reforms in Public Sector Banks (PSBs). The latest move comes close on the heels of the massive Punjab National Bank (PNB) scam and subsequent clamour within the establishment for sweeping reforms in the banking sector. According to sources in the PMO, the Economic Advisory Council (EAC) has suggested that the BBB could be upgraded as a holding company for appointment of top bank officers in consultation with the RBI. The EAC has suggested that the new body should directly report to the PMO, and not to the Finance Ministry. "The EAC has suggested that Department of Financial Services in the Finance Ministry that looks after the functioning of banks, financial institutions and insurance companies to be kept at arm's length in the functioning of new body," sources said. It is learnt that the EAC proposal titled 'Continuing Reforms in PSBs for Better Performance' is under active consideration of the PMO and a decision to upgrade the BBB is likely to be announced soon.