As per the latest practice after the change approved in 2020, what is the current accounting year of the Reserve Bank of India for preparing its annual accounts?

Introduction / Context:

This question focuses on a factual but important change related to the Reserve Bank of India, the country s central bank. Earlier, the Reserve Bank of India followed a different financial year from that of the Government of India. In recent years, a decision was taken to align the RBI accounting year with the government s financial year. Examinations now often ask about this updated accounting year, so it is important to know the latest arrangement rather than the older system.

Given Data / Assumptions:

• The institution in question is the Reserve Bank of India.
• The topic is its accounting or financial year, that is, the twelve month period for which it prepares its annual accounts.
• The options include several possible twelve month cycles such as April to March and July to June.
• The question expects awareness of the change that brought RBI in line with the central government s financial year.

Concept / Approach:

For many decades, the Reserve Bank of India followed a financial year from July to June. However, to simplify budgeting, reporting and coordination with the central government, a decision was made to shift the RBI s accounting year to align with the government s financial year of April to March. After the change took effect, the RBI now uses April to March as its accounting year. Therefore, when a current affairs oriented question asks about the accounting year, the correct answer is April to March.

Step-by-Step Solution:

Verification / Alternative check:

If you consult recent annual reports of the RBI or official press releases, you will see that they clearly state the period of the financial year as from April 1 to March 31, in line with the Government of India. This is a clear change from earlier documents which used July to June. Such official sources remove any doubt about the present position.

Why Other Options Are Wrong:

July to June was the older accounting year used historically, but it has been changed and is no longer the current practice.

October to September is not used as a financial year by the RBI or by the central government in India.

January to December, while used as a calendar year and in some countries as a financial year, is not the accounting year adopted by the RBI.

June to May is not a recognised financial year in this context and appears only as a distractor.

Common Pitfalls:

Many learners memorised the earlier information that RBI uses July to June and have not updated their knowledge. As a result, they may still mark July to June in exams even though the official position has changed. Another pitfall is to assume that because the question may be based on older material, the old answer is correct. In current affairs and banking awareness, you should always revise changes to institutional practices and update your facts to the latest available information.

Final Answer:

The current accounting year of the Reserve Bank of India is April to March.