The board of the Reserve Bank of India has recommended that the financial year of the central bank align with the government’s fiscal year from the current financial year. The RBI’s financial year starts from July and ends in June.
“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 and approved forwarding a proposal to the government for its consideration,” the RBI said after its board meeting on Saturday in New Delhi.
For this financial year, 2020-21, it will start on July 1, 2020, and be for nine months up to March 31, 2021. Thereafter, all financial years will start on April 1 every year, aligned with that of the government. The decision to align RBI’s financial year with the government’s fiscal year was recommended by the Bimal Jalan committee that was primarily set up to review the economic capital framework of RBI.
Since Saturday’s board meeting was the first one after the Union Budget, Finance Minister Nirmala Sitharaman addressed the RBI board, as per the custom.
“The Finance Minister 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 the consideration of the government,” the statement said.
The board reviewed the current economic situation and various areas of operations of the RBI, it added.
