Document title: Rate of Interest on Government of India Floating Rate Bond 2034
Issuing authority: Reserve Bank of India, Department of Communication
Reference number: Press Release 2026-2027/1405
Date: October 29, 2026
Policy rates and liquidity
The Reserve Bank of India has fixed the rate of interest for the Government of India Floating Rate Bond 2034 (FRB 2034) for the half‑year period from October 30, 2026 to April 29, 2027 at 7.26 per cent per annum. The coupon of FRB 2034 is composed of a base rate, which is calculated as the average of the Weighted Average Yield (WAY) of the last three auctions of 182‑day Treasury Bills as of the rate‑fixing day (October 30, 2026), plus a fixed spread of 0.98 per cent.
Capital markets and flows
The announcement provides market participants with the benchmark yield for the floating‑rate sovereign instrument, linking it directly to short‑term Treasury Bill yields and a predetermined spread. This linkage is intended to reflect prevailing market conditions in the short‑term money market while offering a transparent and predictable pricing mechanism for the floating‑rate bond series.
The press release is signed by Deputy General Manager Ajit Prasad of the Communications Division, confirming the official nature of the rate fixation.