RBI to follow April-March accounting year from this year
17 Feb 2020
Reserve Bank of India will follow an April-March fiscal year beginning this year, instead of the hitherto followed July-June financial year, in a move to align its accounting year with that of the central government.
The RBI Central Board on Saturday recommended an April-March financial year, beginning 1 April this year (2020-2021), and forwarded the proposal to the central government for its consideration.
The change in financial year will help RBI to pass on the surplus funds to the government earlier than before. At present, RBI gives interim dividend to the government in February and final pay-out in August.
The decision was taken last year following the recommendations of the Bimal Jalan panel. RBI's current fiscal ends on 30 June 2020. Its FY 2019-20 will be for nine months up to 31 March 2020. Thereafter, all FY will start on 1 April every year.
Addressing the directors of the Central Board of the RBI, finance minister Nirmala Sitharaman outlined the thinking behind the Union Budget 2020-21 and the focus areas of the government.
The finance minister indicated increased complementarity in policy between the RBI and the government to address growth concerns.
The RBI board meeting reviewed the current economic situation, global and domestic challenges and various areas of operations of the Reserve Bank.