RBI Financial Year: Everything You Need to Know
31 July 2025 · Sachin Gadekar
Understanding why the RBI financial year was from July to June, what changed, and what it means in 2024 and 2025.

What is the RBI Financial Year?
India’s central bank, the Reserve Bank of India (RBI), plays a crucial role in managing the country's monetary policy, currency issuance, and financial stability. But did you know that the RBI’s financial year is different from the Indian government's financial year?
In this article, we’ll explore why RBI’s financial year starts from July, what changes have occurred recently, and the significance of the RBI financial year 2024 and 2025. This is especially useful for investors, economists, and anyone curious about the RBI’s operations.
The RBI financial year refers to the 12-month period used by the Reserve Bank of India for accounting and budgeting purposes. Historically, the RBI’s financial year ran from July 1 to June 30, different from the Indian government’s financial year, which runs from April 1 to March 31.
Why RBI Financial Year Was from July to June
The RBI adopted the July–June financial year cycle since its inception in 1935. The main reasons were:
To align with the agricultural cycle, which significantly affects monetary policy in an agrarian economy like India.
To give RBI sufficient time to assess budgetary announcements made by the government in February before finalizing its accounts.
It also allowed more accurate forecasting of inflation, money supply, and other macroeconomic indicators.
However, the RBI was the only major central bank in the world following a non-April–March accounting year.
RBI Financial Year Change: The Shift to April–March
In 2020, the RBI decided to transition from the July–June cycle to the April–March financial year, aligning with the Union Government’s fiscal year. The change was aimed at:
Improving budget synchronization between RBI and the government.
Ensuring better comparability of financial data with other institutions.
Streamlining the financial planning and reporting processes.
When Was the Change Implemented?
The transition officially took place in FY 2021–22, meaning that from April 2021 onwards, the RBI began following the April–March financial year like other public institutions.
To make the switch smoother, the RBI had a 9-month transitional accounting year from July 2020 to March 2021.
RBI Financial Year 2024 and 2025: What to Know
As of 2024 and 2025, the RBI financial year now runs from April 1 to March 31, in sync with the Government of India.
This means:
RBI’s Annual Report for FY 2023–24 covers April 1, 2023, to March 31, 2024.
The RBI financial year 2025 will span from April 1, 2024, to March 31, 2025.
Policy announcements, budget alignments, and accounting audits are now more consistent with other government departments and financial institutions.
Impact of the Financial Year Change
The shift had multiple implications:
1. Operational Alignment
With the new cycle, RBI can align its operations, reports, and transfers to the central government’s budget cycle more efficiently.
2. Transparency and Comparability
Data from RBI can now be easily compared with other fiscal data, making financial analysis and reporting clearer for analysts and policymakers.
3. Dividend Transfer to Government
Since RBI transfers its surplus to the central government, aligning the financial year simplifies the timing and estimation of these transfers.
FAQs about RBI Financial Year
1. What is the current RBI financial year?
As of now, the RBI follows the April to March financial year. For example, FY 2024–25 spans from April 1, 2024, to March 31, 2025.
2. Why did the RBI change its financial year?
To align with the Indian government’s financial year, improve operational efficiency, and ensure better financial planning and data consistency.
3. What was the RBI’s financial year earlier?
Prior to FY 2021–22, the RBI followed a July to June financial year.
4. Is RBI’s financial year change permanent?
Yes, the RBI now permanently follows the April to March cycle, just like the Union Government.
5. Does this change affect individual investors?
No direct impact. However, the synchronization improves macroeconomic data reporting and policy alignment, which may indirectly benefit market participants.
Final Thoughts
The RBI financial year change marks a significant move toward streamlined governance and financial reporting. Now aligned with the Government of India, the RBI financial year 2024 and 2025 operates from April to March, simplifying dividend transfers, policy implementations, and macroeconomic analysis.
As investors or finance enthusiasts, understanding the accounting year of RBI helps interpret RBI’s annual reports, monetary policy timelines, and dividend disbursals more accurately. Stay updated with Ultra as we continue simplifying the complex world of finance and investments for you.