RBI announces GOI Floating Rate Bond 2034 interest rate for October 2026-April 2027; check details

The Reserve Bank of India (RBI) has announced the interest rate on Government of India Floating Rate Bond 2034 (FRB 2034) at 7.26% per annum for the six-month period from October 30, 2026, to April 29, 2027.

According to the RBI notification, the interest rate on FRB 2034 is linked to the average Weighted Average Yield (WAY) of the last three auctions of 182-day Treasury Bills (T-Bills), along with a fixed spread of 0.98 percentage points.

How is the interest rate on FRB 2034 calculated?

The coupon rate on FRB 2034 is calculated by adding a fixed spread of 0.98 percentage points to the average Weighted Average Yield of the last three 182-day T-Bill auctions preceding the rate-fixing date.

The base rate changes every six months, depending on Treasury Bill yields, while the fixed spread remains unchanged throughout the bond's tenure.

What does the new interest rate mean for investors?

Investors holding FRB 2034 will earn interest at 7.26% per annum during the October 30, 2026, to April 29, 2027 period. For an investment of ₹1 lakh, this translates into approximately ₹7,260 in annualised interest, or ₹3,630 for six months, before tax, assuming the investment is held throughout the period.

Since the bond carries a floating interest rate, the coupon may change at the next six-month reset.

How can investors buy Floating Rate Bonds?