The Reserve Bank of India (RBI) has planned to align its financial year with the centre.
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.
For the time being, both the RBI and the Government adhere the ‘T plus one’ system. This means that the financial year stretches over two successive years. However, there is one fundamental difference. The fiscal year for the Centre begins on April 1 in ‘T’ (first year) and ends on March 31 in ‘T+1’ (second year). The fiscal year for the RBI, however, starts on July 1 in the first year and finishes on June 30 in the next year.
The alignment with the Government will bring a change in the way the Central bank does book keeping. Besides, it may not need them to announce the interim dividend.