Government of India Floating Rate Bond 2024

RBI announces rate of interest on Government of India Floating Rate Bond 2024

The Floating Rate Savings Bonds of the Reserve Bank of India are issued by the Indian Government. Investors can purchase the Floating Rate Savings Bonds 2024 from private or public sector lenders. To borrow money from the public, financial institutions, businesses, and governments issue floating rate bonds. As opposed to standard regular bonds that have a fixed interest rate, floating rate bonds have an interest rate that is tied to a predefined benchmark rate and is periodically changes.

Government of India Floating Rate Bond 2024


Interest payment - The rate of interest on Government of India Floating Rate Bond 2024 (GOI FRB 2024) applicable for the half year November 07, 2022 to May 06, 2023 shall be 6.75 per cent per annum. It may be recalled that FRB 2024 will carry a coupon, which will have a base rate equivalent to the average of the Weighted Average Yield (WAY) of last three auctions (from the rate fixing day i.e., November 07, 2022) of 182 Day T-Bills, plus a fixed spread 

RBI floating rate taxation - Depending on the bond holder's relevant tax status, interest on the bonds will be subject to taxation under the Income-tax Act of 1961. While interest is being paid, taxes will be deducted at the source.

Key features of RBI floating rate bonds 2024

These floating-rate savings bonds from the RBI have a lock-in period of seven years. However, there is some relaxation for senior citizens who buy these bonds Investors aged between 60 and 70 years may encash the bond after six years. Those aged between 70 and 80 years may encash the bond after five years. Those aged above 80 years may encash the bond after four years

Transferable to nominee A sole holder or a sole surviving holder of a Bond, being an individual, can make a nomination

Earn high regular returns with RBI Floating Rate Bond


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