RBI Sets New Interest Rate for GOI FRB 2035 at 6.66%
| Aspect | Details |
|---|---|
| Why in News | RBI sets new interest rate for GOI FRB 2035. |
| Bond Name | Government of India Floating Rate Bonds 2035 (GOI FRB 2035). |
| New Interest Rate | 6.66% per annum. |
| Effective Period | January 25, 2025 - January 24, 2030. |
| Previous Interest Rate | 6.58% per annum (January 25, 2020 - January 24, 2025). |
| Bond Issuance Date | January 25, 2005. |
| Interest Rate Adjustment | Adjusted every 5 years based on 5-year yield of Government of India securities. |
| Purpose of Issuance | Issued to RBI in exchange for subordinated debt from IDFC. |
| Key Feature | Provides fixed spread over the 5-year yield on government securities. |
| Investor Benefit | Predictable income stream, government-backed, suitable for conservative investors. |