RBI shifts its Accounting Year to July 2020-Mar 2021

The Reserve Bank of India (RBI) has decided to align its financial year with the Government.

The central board of the RBI, in a meeting at New Delhi on Saturday, finalised that the fiscal year 2021-22 for the central bank will start from April 1. Fiscal 2019-20 will end on June 30, 2020 while fiscal year 2020-21 will be beginning on July 1, 2020 but end on March 31, 2021. Thereafter, all fiscal year will begin on April 01 every year.

As of now, both - the RBI and the Government - follow the 'T plus one' system. This means the financial year spreads over two successive years. But still, there is one fundamental difference. The fiscal year for the Government starts on April 1 in 'T' (first year) and ends on March 31 in 'T+1' (second year). The fiscal year for the RBI, however, begins on July 1 in the first year and ends on June 30 in the next year.

The alignment with the Government will change the way the RBI does book keeping. Also, it may not require them to announce the interim dividend.

Source: rbi.org.in( Finance Minister addresses the Central Board of Directors of Reserve Bank of India😉 Business Line

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