RBI announces 8% interest rate on Floating Rate Bond 2034

Reserve Bank of India

The Reserve Bank of India (RBI) on April 29 announced an 8 percent interest on Government of India Floating Rate Bond 2034 (GOI FRB 2034) for the half year April 30, 2024 to October 29, 2024.

“It may be recalled that FRB 2034 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., April 30, 2024) of 182 Day T-Bills, plus a fixed spread (0.98 per cent),” the RBI said in a release.

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.

The FRB bonds carry a coupon with a base rate equivalent to a weighted average yield of the last three auctions of 182-day Treasury Bills (T-Bill) plus a fixed spread decided by way of auction.