The Reserve Bank of India’s Floating Rate Bond 2028 (FRB 2028) carries a 6.45% annualized coupon for the six-month period from 4 October 2026 through 3 April 2027. That is up from 6.17% for the preceding half-year, but it is a reset for this period—not a rate guaranteed through the bond’s 2028 maturity.
What is the FRB 2028 rate, and when does it apply?
The coupon is 6.45% per annum for the half-year beginning 4 October 2026 and ending 3 April 2027, according to contemporaneous reports of the RBI announcement. Upstox reproduces the rate and dates from a sentence it attributes to the RBI’s 1 October 2026 release; see its report. Mint reported that the preceding six-month coupon, ending 3 October 2026, was 6.17%.
The increase is 0.28 percentage point. It describes the change between two coupon periods, not a forecast for later resets.
How does the floating coupon reset?
Mint reports that FRB 2028’s coupon is linked to the average weighted average yield of the last three 182-day Treasury bill auctions, plus a fixed spread of 0.64 percentage point. As those benchmark auction yields change, the resulting coupon can change at a future reset. The RBI’s general FAQ explains that floating-rate bonds have variable coupons reset at announced intervals and gives a historical FRB example using 182-day Treasury bill auction yields. Read the RBI’s FAQ.
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The current 6.45% rate therefore answers what the bond pays for this specified half-year, not what it will pay for every remaining period. The next coupon cannot be inferred from the current rate alone.
What does 6.45% mean for an investor’s income?
At 6.45%, ₹1 lakh corresponds to ₹6,450 of interest on an annualized basis if that rate applied for a full year. Because this coupon is set for only the stated six-month period and may reset afterward, ₹6,450 is an illustration, not a promise of income over a full year or the bond’s remaining life.
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Coupon rate and total investment return are different measures. The coupon is the stated annualized interest rate for a period; an investor’s return also depends on the price paid. This matters particularly for a secondary-market purchase, where the price may differ from the bond’s face value. Mint notes this price effect, but the cited reports do not provide a current FRB 2028 price or yield to maturity. Without those figures, a buyer’s realized return cannot be calculated from the coupon alone. See Mint’s report.
Is FRB 2028 the same as Floating Rate Savings Bonds?
No. FRB 2028 is a Government of India floating-rate bond. Floating Rate Savings Bonds, 2020 (Taxable), or FRSB 2020, are a separate savings-bond scheme. RBI material describing FRSB 2020’s seven-year term or age-based premature-encashment lock-ins should not be treated as establishing FRB 2028’s maturity, exit rules, or other terms.
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The RBI’s operational guidelines for FRSB 2020 (Taxable) and its Retail Direct release describing that scheme concern the savings bonds, not FRB 2028’s specific terms. The latter release also describes Retail Direct as a route for retail investment in government securities; it does not establish that FRB 2028 is currently available through any particular platform.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What should investors check before deciding?
The 6.45% coupon is one input, not a complete basis for comparing investments. Before buying or comparing FRB 2028 with a deposit, another bond, or a fund, establish the terms that affect your own outcome:
- Whether the coupon for the next period could differ, given the floating-rate reset.
- The bond’s current purchase price and, where available, its yield to maturity if buying in the secondary market.
- Tax treatment, payment schedule, exit provisions, and eligibility for the specific bond. The cited current-rate reports do not establish FRB 2028’s tax rules or specific exit mechanics.
RBI’s general Retail Direct information is useful for understanding a government-securities investment channel, but check current instrument availability and terms directly before relying on a platform listing.
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