The Reserve Bank of India has officially announced the applicable interest rate for the Government of India Floating Rate Bond 2028 for the upcoming half-year term. Investors holding this sovereign debt instrument can now verify the revised coupon rate applicable from October 2026 through April 2027.
Overview of RBI Floating Rate Bond 2028 Interest Update
The Reserve Bank of India has declared that the rate of interest on the Government of India Floating Rate Bond 2028 (FRB 2028) will be set at 6.45 per cent per annum. This specific rate applies to the half-year duration starting from October 04, 2026, and ending on April 03, 2027. This announcement is critical for bondholders and financial market participants tracking returns on government securities.
Key Details Table
| Feature | Details |
|---|---|
| Authority | Reserve Bank of India (RBI) |
| Instrument | Government of India Floating Rate Bond 2028 (FRB 2028) |
| Applicable Interest Rate | 6.45% per annum |
| Half-Year Period | October 04, 2026 to April 03, 2027 |
| Fixed Spread | 0.64% |
| Press Release Number | 2026-2027/1235 |
| Official Website | https://www.rbi.org.in |
Important Dates
| Milestone Event | Date |
|---|---|
| Period Start Date | October 04, 2026 |
| Period End Date | April 03, 2027 |
| Rate Fixing Day | October 04, 2026 |
Understanding the Coupon Calculation
The coupon structure of the FRB 2028 relies on a distinct calculation method determined by the central bank. It utilizes a base rate equivalent to the average of the Weighted Average Yield (WAY) derived from the last three auctions of 182-day Treasury Bills preceding the rate fixing day. A fixed spread of 0.64 per cent is added to this base rate to arrive at the final payable coupon percentage for the designated half-yearly cycle.
Who Is Affected and What Investors Should Do Next
This notification directly impacts institutional and retail investors holding the Government of India Floating Rate Bond 2028. Bondholders should take note of the 6.45 per cent per annum payout for their financial planning and portfolio tracking during the current half-year term. Investors are advised to visit the official Reserve Bank of India website to read the complete press release and stay updated on subsequent monetary policy announcements and debt management reports.
Frequently Asked Questions
What is the interest rate for the Government of India Floating Rate Bond 2028? The rate of interest is 6.45 per cent per annum.
When is this interest rate applicable? It is applicable for the half year from October 04, 2026, to April 03, 2027.
What is the fixed spread associated with FRB 2028? The fixed spread is 0.64 per cent.
How is the base rate for the coupon calculated? The base rate is equivalent to the average of the Weighted Average Yield of the last three auctions of 182 Day T-Bills from the rate fixing day.
Which organization issued this notification? The notification was issued by the Reserve Bank of India under press release number 2026-2027/1235.
Frequently Asked Questions
What is the interest rate for the Government of India Floating Rate Bond 2028?
The rate of interest is 6.45 per cent per annum.
What period does this interest rate cover?
It covers the half year from October 04, 2026, to April 03, 2027.
What is the fixed spread included in the FRB 2028 coupon?
The fixed spread is 0.64 per cent.
How is the base rate for the bond's coupon determined?
The base rate is the average of the Weighted Average Yield of the last three auctions of 182 Day T-Bills from the rate fixing day.
Where can individuals view the official press release?
Individuals can view the official press release on the Reserve Bank of India website at https://www.rbi.org.in.
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