RBI announces GOI Floating Rate Bond 2028 interest rate for October 2026-April 2027; check details

The Reserve Bank of India (RBI) has announced the interest rate on the Government of India Floating Rate Bond 2028 (FRB 2028) for the six-month period from October 4, 2026, to April 3, 2027.

The bond will carry an interest rate of 6.45% per annum during this period. In its October 1, 2026 release, the RBI said, “The rate of interest on Government of India Floating Rate Bond 2028 (FRB 2028) applicable for the half year October 04, 2026 to April 03, 2027 shall be 6.45 per cent per annum.”

Since FRB 2028 is a floating-rate security, the coupon is reset every six months and the rate applicable during one interest period does not remain fixed for the entire tenure of the bond.

How is the rate set?

The coupon on FRB 2028 is linked to the Weighted Average Yield (WAY) of 182-day Treasury Bills (T-Bills).

In simple terms, the coupon is linked to the average WAY of the last three 182-day T-Bill auctions, with a fixed spread of 0.64 percentage points added to the base rate.

For the current six-month period, the RBI has set the coupon at 6.45% per annum.

How much interest will investors earn?

Interest is paid to investors half-yearly. At a 6.45% annualised rate, an investment of ₹1 lakh would correspond to ₹6,450 in interest over a full year if the rate remained unchanged.

However, the actual rate for subsequent periods may be different because the coupon is reset every six months. Therefore, the current 6.45% rate should not be considered a fixed return for the remaining life of the bond.

What is FRB 2028?

Investors should also note that the 6.45% rate applies only to the October 4, 2026-April 3, 2027 interest period. Interest earned on the bond is taxable according to the investor's applicable tax rules.