RBI announces rate of interest on FRBs 2015(II), FRBs 2011

Mumbai, Aug 7 (UNI) The Reserve Bank of India (RBI) has informed that the rate of interest on Floating Rate Bonds 2015(II) (FRB, 2015(II)) applicable for the year (between August 10 this year and August 9 next year) shall be 7.50 per cent per annum.

The rate of interest on the FRB 2015(II) was set at a mark-up (as decided in the auction held on August 9 in 2004) over and above the variable base rate. The variable base rate for payment of interest shall be the average rate (rounded off up to two decimal places) of the implicit yields at cut-off prices emerging in the three auctions of Government of India 364 day Treasury Bills. The variable base rate based on the average rate of the implicit yields at cut-off prices of the said last three auctions of Government of India 364 day Treasury Bills worked out to be 7 per cent.

The rate of interest on Floating Rate Bonds 2011 (FRB, 2011) applicable for the year (August 8 this year to August 7 next year) has been fixed at 7.13 per cent per annum.

The rate of interest on the FRB, 2011 was set at a mark-up (as decided in the auction held on August 7, 2003) over and above the variable base rate to be announced annually.

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