The correct answer is option 'C' - Appointments Committee.

The Appointments Committee is responsible for deciding all higher-level appointments in the Central Secretariat, Public Enterprises, Banks, and Financial Institutions. Let's delve into the details of the Appointments Committee and its role in the decision-making process.

1. Appointments Committee:
The Appointments Committee is a Cabinet Committee formed by the Government of India. It consists of the Prime Minister and the Minister of Home Affairs. The committee is responsible for making appointments to various key positions in the government and public sector organizations.

2. Composition and Functions:
a) Prime Minister: The Prime Minister is the chairperson of the Appointments Committee. As the head of the government, the Prime Minister plays a crucial role in the decision-making process regarding appointments to higher-level positions.

b) Minister of Home Affairs: The Minister of Home Affairs is the other member of the Appointments Committee. The ministry is responsible for maintaining internal security, law and order, and overall administration. The Minister of Home Affairs provides valuable inputs and insights during the appointment process.

3. Decision-making Authority:
The Appointments Committee has the authority to make decisions regarding appointments to higher-level positions in the Central Secretariat, Public Enterprises, Banks, and Financial Institutions. This includes appointments such as Secretary-level positions, Chairman and Managing Directors of Public Sector Undertakings, and CEOs of Financial Institutions.

4. Importance of the Appointments Committee:
a) Merit-based Appointments: The Appointments Committee ensures that appointments to key positions are made based on merit, competence, and suitability. This helps in maintaining the efficiency and effectiveness of the government and public sector organizations.

b) Transparency: The committee follows a transparent and objective approach in the appointment process. This ensures that appointments are made through a fair and unbiased selection process, promoting transparency in governance.

c) Accountability: The Appointments Committee holds the responsibility of ensuring that appointments are made in the best interest of the organization and the country. It ensures that qualified and competent individuals are chosen for key positions, thereby promoting accountability.

d) Stability and Continuity: The committee plays a vital role in ensuring stability and continuity in the functioning of the government and public sector organizations. By appointing well-qualified individuals to higher-level positions, it contributes to the smooth functioning and long-term growth of these institutions.

In conclusion, the Appointments Committee, consisting of the Prime Minister and the Minister of Home Affairs, is responsible for deciding all higher-level appointments in the Central Secretariat, Public Enterprises, Banks, and Financial Institutions. Its role in ensuring merit-based appointments, promoting transparency, accountability, stability, and continuity is crucial for effective governance.