RBI likely to follow April-March financial year from 2020-21 to align with Centre; proposal sent to govt for approval

The Reserve Bank of India (RBI) may follow April-March fiscal year, instead of the current July-June financial year system after the central bank’s board recommended for aligning it with that of the Central government. Accordingly, the RBI’s April-March financial year system in line with the Central government will be effective from 2020-21 and a proposal in this regard has been forwarded to the government for its nod, said a release. [caption id=“attachment_5684541” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] RBI governor Shaktikanta Das chaired the meeting of the central board on Saturday. Once the new fiscal year system comes into being, the interim dividends and dividends will be aligned with Centre’s financial year of April-March. RBI gives interim dividends in February and final pay-outs in August currently, reported IANS. The internal decision was taken last year in RBI. The Jalan panel while coming out with Economic Framework Capital had recommended a change of accounting year. The RBI’s current fiscal ends on 30 June 2020.  Its FY 2020-21 will start on 1 July 2020 and be for nine months up to 31 March 2021. Thereafter, all FY will start on April 1 every year, aligned with the government, RBI said. Earlier, Finance Minister Nirmala Sitharaman addressed the directors of the central board. She outlined the thinking behind the Union Budget 2020-21 and the focus areas of the government. Sitharaman indicated increased complementarity in policy between the RBI and the government to address growth concerns. — With inputs from agencies