Floating rate bond 2028 to pay 6.45% a year from Oct 4 to April 3
The Centre's Floating Rate Bond 2028 will pay 6.45% a year for the six months from October 4, 2026 to April 3, 2027.
Official title: Rate of Interest on Government of India Floating Rate Bond 2028 · Press Release 2026-2027/1235
What happened
The Government of India has a bond whose interest rate is reset every six months. For the half year from October 4, 2026 to April 3, 2027, the rate on Floating Rate Bond 2028 will be 6.45% a year.
The rate is set by a formula: the average yield of the last three auctions of 182-day Treasury bills, plus a fixed 0.64 percentage points. So the T-bill part works out to about 5.81%. The bond pays its holders this rate, so it follows market rates up or down.
What it means for you
It affects you only if you own this bond. For everyone else it is a reading of short-term rates.
What it means for businesses
Banks and funds holding the bond will see their income reset to 6.45%. It is also a pointer to where short-term rates stand.
Read the original
Press release on rbi.org.in ↗ Official PDF ↗
This explainer simplifies the official text. If anything here differs from the RBI's release, the release is right.