As per news report, the central board of Reserve Bank of India (RBI) in a meeting has decided that the fiscal year 2021-22 for the central bank will start from April 1. The fiscal year for 2019-20 will end on June 30, 2020 whereas the fiscal year 2020-21 will be beginning on July 1, 2020. But it will end on March 31, 2021. Thereafter, all fiscal year will begin on April 01 every year.
Both the RBI and the Government follows ‘T plus one’ system which means that the financial year stretches over two successive years. But there is a 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) whereas 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.
