RBI announces rate of interest on Floating Rate Bonds, 2013

The rate of interest on the Floating Rate Bonds, 2013 (FRB, 2013) applicable for the year (September 10, 2011 to September 9, 2012) shall be 8.70 per cent per annum.

It may be recalled that the rate of interest on the FRB, 2013 was set at a mark-up (as decided in the auction held on September 9, 2004) over and above the variable base rate. The variable base rate for payment of interest shall be the average rate (rounded off up to two decimal places) of the implicit yields at cut-off prices of the last three auctions of Government of India 364-day Treasury Bills held up to the commencement of the respective half yearly coupon period which worked out to be 8.25 per cent. The mark-up decided in the auction held on September 9, 2004 was (+) 0.45 per cent (plus 45 basis points). The coupon rate has thus been fixed at 8.70 per cent.

Ajit Prasad
Assistant General Manager

Press Release : 2011-2012/382