A cashier counts Indian rupee currency notes inside a bank in Mumbai August 5, 2013. REUTERS/Danish Siddiqui/Files

MUMBAI (Reuters) - India has set up a panel that will help select chief executives of state-run banks and also work with banks to develop strategies and capital-raising plans.

The Banks Board Bureau, announced last year, is part of the government’s plan to reform the dominant yet ailing state-run banking sector.

The government named former chief auditor Vinod Rai as the chairman of the Banks Board Bureau, which will start functioning from April 1, and six other members, according to a finance ministry statement on Sunday.