RBI Announces Interest Rate on 2016 Floating Rate Bonds


The interest rate on Floating Rate Bonds, 2016 (FRB, 2016) applicable for the year (May 7, 2013 to May 6, 2014) will be 7.62% per annum, the Reserve Bank of India reported ( RBI) in a press release. Tuesday.

As a reminder, the 2016 FRB interest rate was set at an increase (as decided at the auction of May 6, 2004) in addition to the variable base rate.

The variable base rate for the payment of interest will be the average rate (rounded to two decimal places) of the returns implied at the closing prices of the three 364-day Treasury bill auctions immediately preceding the relative annual coupon reset date.

The variable base rate based on the average rate of the returns implied at the closing prices of the said last three auctions of 364-day T-bills was 7.58%.

The increase decided at the auction of May 6, 2004 was (+) 0.04 (plus 0.04). The coupon rate has been set accordingly.

Dear reader,

Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times resulting from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative views and cutting edge commentary on relevant current issues.
However, we have a demand.

As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital editor


Comments are closed.