The FRB 2034 rate has risen to 7.26% a year for the six months from October 30, 2026, through April 29, 2027, the Reserve Bank of India said. The coupon on the Indian government floating-rate bond was 6.45% in the preceding six-month period.
How the FRB 2034 rate is set
The 81-basis-point increase reflects higher yields on 182-day Treasury bills. The bond’s coupon is based on the average weighted yield of the last three relevant auctions, plus a fixed spread of 0.98 percentage points.
The average yield from the October 7, 14 and 28 auctions was about 6.28%. The RBI’s guide to floating-rate bonds explains that their coupons reset at announced intervals and can combine a base rate with a fixed spread.
What a ₹5 lakh holding earns
For a holding with a face value of ₹5 lakh, the 7.26% annual coupon translates to approximately ₹18,150 over six months. At the previous 6.45% rate, the equivalent amount was approximately ₹16,125, or ₹2,025 less.
That illustration uses the bond’s face value, not necessarily the price an investor paid to acquire it. The coupon may change again after the current rate period ends.
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