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No, RBI Is Not Changing Its Financial Year In The Wake Of Coronavirus Outbreak In The Country

Claim

A WhatsApp forward has claimed that the RBI has extended the closure of the  Fiscal Year till 30th June 2020. 

Here’s what the WhatsApp forward exactly reads, “BREAKING NEWS

The next financial year will be from 01.07.2020 to 31.03.2021. RBI extends the year closing till 30.06.2020. RBI: FISCAL 2019-20 WILL END ON JUNE 30, 2020 WHILE the FISCAL YEAR 2020-21 WILL BEGIN ON JULY 1, 2020 BUT ENDS ON MARCH 31, 2021

Reserve Bank of India re-draws its financial year

Reserve Bank of India re-draws its financial year

The link of a ‘The Hindu’ report dated February 2020 is also mentioned in the viral WhatsApp forward.

Verification

Before verifying the viral WhatsApp forward, we took a moment to look at The Hindu for the story mentioned in the claim in order to ensure that the link is not tampered with and the date of publishing. 

As we observed the aforementioned link, we noticed that the link is not tampered with and the article was first published on 15th February 2020 and later updated on 16th February 2020. Notably, what was updated in the article is not mentioned anywhere in the article and this is one of the many reasons why the media is losing its credibility as online media or alternate media is seeing a positively sloped acceleration.

In order to know what was originally published in the article, when we checked for an archived version of the article, we found that the article is not archived.

Now, as it is evident from the article itself that the article was published way before the Covid-19 outbreak had a major impact on India. We tried to collect more information

on the financial year norms followed by the Government and the RBI. We observed that the Financial year practiced by the RBI is from July to June and the government follows the April to March calendar. From the same source, we also learned that the RBI was deciding to sync its accounting calendar with the Government’s fiscal year in August last year.

After nearly 8 decades, RBI to change its accounting year to April-March

Breaking away with nearly eight decades of practice, the Reserve Bank of India (RBI) on Monday decided to follow April-March calendar, and not July-June calendar, as its accounting year, a top central bank official said. It was done to align its accounting year with that of the central government.

It is noteworthy that as per the report cited above, the said decision was brought into consideration in August last year. (Similar to The Hindu report mentioned in the viral claim, the aforementioned Business Standard article was also updated and hence the origin of the report can not be traced back to collect more information.) It is evident from the date when this article was published that the decision to change the accounting calendar of RBI is well before the Covid-19 outbreak first emerged in the Chinese city Wuhan.

As we searched further, we found a report published by media outlet Firstpost that throws more light on the issue. The Firstpost article dated 17th February, 2020 reports that the RBI had sent a proposal to the government suggesting the said change in its accounting calendar.

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

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.

 When we performed a custom Google search, we found that the government think-tank NITI Ayog in 2016, in a discussion note titled ‘NEED FOR CHANGING INDIA’S FINANCIAL YEAR’ suggested that the RBI’s accounting year should be changed.

We also searched for more information about changing the accounting year of RBI and we found that many media outlets have carried multiple reports on the issue, the same can be viewed here.

Hence it is proved from the findings cited above that the change in the RBI’s accounting year is not motivated by the coronavirus outbreak in the country.

Sources

  • Google Search

Result: False Context

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Saurabh Pandey
The reason why he chose to be a part of the Newschecker team lies somewhere between his passion and desire to surface the truth. The inception of social networking sites, misleading information, and tilted facts worry him. So, here he is ready to debunk any such fake story or rumor.

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