The Reserve Bank of India (RBI) said that rate of interest on the floating rate bonds, 2014 applicable for the year (20 May 2012 to 19 May 2013) is 8.37% per annum.
The central bank in a press release said, “The variable base rate for payment of interest shall be the average rate (rounded off up to two decimal places) of the implicit yields at cut-off prices of the last three auctions of Government of India 364 day Treasury Bills held up to 19 May 2012.” The variable base rate 364-day of treasury bills is 8.23% pa. The spread decided in the auction held on 19 May 2003 was 0.14%. The coupon rate has been fixed accordingly.