Document title: Rate of Interest on Government of India Floating Rate Bond 2028
Issuing authority: Reserve Bank of India (RBI)
Reference number: Press Release 2026-2027/1235
Date: October 01, 2026
Policy Rates and Liquidity
The Reserve Bank of India has fixed the rate of interest applicable to the Government of India Floating Rate Bond 2028 (FRB 2028) for the half‑year period from October 04, 2026 to April 03, 2027 at 6.45 per cent per annum. This rate reflects the RBI’s assessment of prevailing market conditions and serves as the benchmark for the floating‑rate instrument.
Capital Markets and Flows
The FRB 2028 carries a coupon whose base rate is derived from the average of the Weighted Average Yield (WAY) of the last three auctions of 182‑day Treasury Bills, measured on the rate‑fixing day of October 04, 2026. To this average, a fixed spread of 0.64 per cent is added, forming the total coupon base rate for the bond. The methodology links the bond’s yield directly to short‑term Treasury market movements, ensuring that the coupon adjusts in line with Treasury Bill yields.
Regulatory and Policy Measures
The announcement was made through a press release (2026‑2027/1235) issued by the RBI’s Department of Communication. The release was signed by Deputy General Manager Ajit Prasad, who handles communications for the central bank. No additional regulatory actions or policy changes were indicated beyond the rate fixation for the FRB 2028.
The RBI’s setting of the FRB 2028 rate at 6.45% provides market participants with a clear reference for pricing and investment decisions related to government floating‑rate securities for the specified half‑year period.