New Delhi, Oct. 5 -- The Reserve Bank of India (RBI) has fixed the interest rate on the Government of India Floating Rate Bond 2028 (FRB 2028) at 6.45% per annum for the six-month period from 4 October 2026 to 3 April 2027.

The rate is higher than the 6.17% coupon applicable to the bond during the previous six-month period, which ended on 3 October 2026.

However, investors should not read the 6.45% rate as a return that will remain unchanged until the bond matures. As the name suggests, the bond has a floating coupon that is reset every six months.

The coupon on FRB 2028 is linked to short-term government borrowing rates. According to the RBI, its base rate is the average Weighted Average Yield (WAY) of the last three auctions of 182-d...