RBI announced an 8 percent interest on Government of India Floating Rate Bond 2034 (GOI FRB 2034) for the half year 30 April 2024 to 29 October 2024.
Banking & Finance
On 29 April 2024, The Reserve Bank of India (RBI) announced an 8 percent interest on Government of India Floating Rate Bond 2034 (GOI FRB 2034) for the half year 30 April 2024 to 29 October 2024. 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 percent). It is linked to the interest rate of the National Savings Certificate (NSC), a small savings scheme backed by the Union government. The interest rate of RBI Floating Rate Savings Bonds is 0.35% higher than what NSC offers. Now, NSC offers an interest rate of 7.7% for the April-June quarter. Going by the set formula, RBI Floating Rate Savings Bond 2020 (Taxable) will continue to fetch a high interest rate of 8.05% from July 1, 2024, for the next six months.
The Government of India is issuing a special type of bond called a Floating Rate Bond (FRB) that matures in 2034.
FRBs have a maturity period of seven years.
Founded- 1 April 1935
Deputy Governors- Dr. M.D. Patra, M. Rajeshwar Rao, T. Rabi Sankar, Swaminathan J.
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