RBI announces 8.51% rate of interest on Floating Rate Bond 2033

The Reserve Bank of India (RBI) announced 8.51 percent rate of interest on Government of India Floating Rate Bond 2033 (GOI FRB 2033) on March 21.

The rate of interest will be applicable for the half year March 22, 2023 to September 21, 2023, the central bank said in a release.

The central bank further said that it may be recalled that FRB 2033 carries a coupon, which has a base rate equivalent to the average of the Weighted Average Yield (WAY) of last three auctions (from the rate fixing day, i.e., March 22, 2023) of 182 Day T-Bills, plus a fixed spread (1.22 percent).

Floating Rate Bonds are securities that do not have a fixed coupon rate. They have a variable coupon rate which is re-set at preannounced intervals.