RBI: rate of interest on Govt. of India floating rate bond 2033 Mar 20, 2026

The Reserve Bank of India (RBI) has confirmed that the interest rate for the Government of India Floating Rate Savings Bond 2033 (GOI FRB 2033) for the half-yearly period ending March 21, 2026, will remain at 6.82 percent per annum. This rate applies to the period from September 22, 2025, to March 21, 2026, and is calculated based on the bond's coupon structure, which ties to the average Weighted Average Yield (WAY) of the three most recent auctions of 182-day Treasury Bills (T-Bills) as of the rate-fixing date, plus a fixed spread of 1.22 percent according to the bond's terms.

The current rate reflects the prevailing monetary policy environment and liquidity conditions in the short-term debt market. Investors holding the GOI FRB 2033 will receive interest payments in accordance with this rate, which is reviewed and adjusted every six months. The floating-rate mechanism is designed to align returns with market yields, offering investors a degree of protection against interest rate volatility compared to fixed-rate instruments.

Historically, the rate for the preceding period (March 22, 2022, to September 21, 2022) was set at 5.53 percent per annum, underscoring the upward trend in yields driven by broader macroeconomic factors. The RBI's announcement reaffirms the bond's role as a flexible savings instrument, with returns linked to transparent and regularly updated market benchmarks.

Investors are advised to monitor official RBI communications for updates on future rate adjustments, which will be determined based on T-Bill auction data at subsequent review dates.