RBI to align its accounting year with government's fiscal year from 2020-21
The Reserve Bank Board on Saturday recommended aligning its accounting year, beginning July, with the financial year from 2020-21. Once affected, the...
The Reserve Bank Board on Saturday recommended aligning its accounting year, beginning July, with the financial year from 2020-21. Once affected, the RBI's accounting year will follow the April-March fiscal year instead of July-June.
The Central Board of Directors of the RBI at its 582nd meeting reviewed the current economic situation, global and domestic challenges and various areas of operations of the Reserve Bank.
"The board recommended aligning the financial year of RBI, currently July-June, with the government's fiscal year (April-March) from the year 2020-21. It approved forwarding a proposal to the government for its consideration," the RBI said in the statement.
With this, the interim dividends and dividends will be aligned with the government's fiscal year April-March. At present, RBI gives interim dividends in February and final pay-outs in August.
An internal decision was taken by RBI in 2019. The Jalan panel while coming out with Economic Framework Capital had recommended a change of accounting year. RBI's current fiscal ends on June 30, 2020. It's FY 2020-21 will start on July 1, 2020, and be for nine months up to March 31, 2021. Thereafter, all FY will start on April 1 every year, aligned with the government, RBI said.
Addressing the Directors of the Central Board, the Finance Minister Nirmala Sitharaman outlined the thinking behind the Union Budget 2020-21 and the focus areas of the government. She indicated increased complementarity in policy between the RBI and the government to address growth concerns.
Complimenting the finance minister on the Budget, the board members made various suggestions for consideration of the government, it added.
The finance minister was accompanied by Minister of State for Finance Anurag Singh Thakur, Finance Secretary Rajiv Kumar and Expenditure Secretary T V Somanathan, among other senior officials.