RBI: FRB 2034 bond to pay 7.26% interest for next six months
The RBI said on 29 October 2026 that the Government of India Floating Rate Bond 2034 will pay 7.26 per cent interest per year from 30 October 2026 to 29 April 2027. This rate applies to investors who hold this government bond.
What this means for you
If you hold the FRB 2034 bond, you will get interest at 7.26 per cent per year for the next six months. Ordinary people do not need to do anything; the RBI fixes the rate and interest is paid automatically. Those who do not hold this bond are not directly affected.
Key facts
- Interest rate: 7.26 per cent per annum
- Period: 30 October 2026 to 29 April 2027
- Applies to the FRB 2034 bond
- Rate fixing day: 30 October 2026
- Rate = average of last three 182-day T-Bill auctions plus a fixed spread of 0.98 per cent
What has been decided
The RBI issued a press release on 29 October 2026. It said that the interest on the Government of India Floating Rate Bond 2034 (FRB 2034) for the next six months will be 7.26 per cent per annum. This rate is for the period from 30 October 2026 to 29 April 2027.
What FRB 2034 is
FRB 2034 is a Government of India bond whose interest rate is not fixed but changes from time to time. Such bonds are called Floating Rate Bonds. The interest rate is set afresh for every six-month period.
How the rate is set
The RBI said the rate on this bond is made of two parts. First, the average Weighted Average Yield of the last three auctions of 182-day T-Bills, taken from the rate fixing day, which is 30 October 2026. Second, a fixed spread of 0.98 per cent is added to it. The rate that comes out of these two is applied to the bond.
Who benefits
This rate applies to people, companies and institutions that hold the FRB 2034 bond. They will get interest at 7.26 per cent per annum for the next six months. Those who do not hold this bond are not directly affected.
What ordinary people need to do
Ordinary people do not need to do anything. The RBI fixes the interest rate and bond holders get interest automatically. For more details, the press release can be seen on the RBI website.
Questions and answers
What is the interest rate on FRB 2034 for the next six months?
7.26 per cent per annum. This rate is for the six-month period from 30 October 2026 to 29 April 2027.
From when does this interest rate apply?
From 30 October 2026. It will remain in force till 29 April 2027.
What is FRB 2034?
It is the Government of India Floating Rate Bond 2034, a government bond whose interest rate changes from time to time. Its rate is fixed every six months.
How is the interest rate on this bond worked out?
The average yield of the last three auctions of 182-day T-Bills is taken and a fixed spread of 0.98 per cent is added to it. Together they make the interest rate.
Do ordinary people need to do anything?
No. The RBI fixes the rate and bond holders get interest automatically.
Source: RBI, "Rate of Interest on Government of India Floating Rate Bond 2034", 29 October 2026. Read the original notice
This routine notice was drafted with AI from an official source and published automatically; an editor reviews it after publishing. Report an error