RBI Announces Rate Of Interest On Floating Rate Bonds, 2017

01 January,Mumbai

Reserve Bank of India (RBI) Friday announced therate of interest on Floating Rate Bonds, 2017.

The rate of interest on the Floating Rate Bonds, 2017 (FRB, 2017)applicable for the half-year (January 02, 2016 to July 01, 2016)shall be 7.54 per cent per annum.

It may be recalled that the rate of interest on the FRB, 2017 wasset at a mark-up (as decided in the auction held on July 1, 2002)over and above the variable base rate.

The variable base rate for payment of interest shall be theaverage rate (rounded off up to two decimal places) of the implicityields at cut-off prices of the last six auctions of Government ofIndia 364-day Treasury Bills held up to the commencement of therespective half yearly coupon period which works out to be 7.20 percent.

The mark-up decided in the auction held on July 1, 2002 was (+)0.34 per cent (plus 34 basis points). The coupon rate has thus beenfixed at 7.54 per cent, it added.