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What are RBI Floating Rate Bonds ?



 The Reserve Bank of India (RBI) issues bonds known as RBI Floating Rate Bonds, which provide variable interest rates. The interest rate on RBI Floating Rate Bonds is linked to the National Savings Certificate (NSC) rate, ensuring a dynamic return for investors in response to prevailing interest rates. These floating rate bonds will continue to earn 0.35% higher ROI than the prevailing NSC rate. If NSC’s ROI changes, the coupon/Interest rate on these bonds is subject to change every six months, on January 1 and July 1.

Importance of Investing in RBI Floating Rate Bonds

Investing in RBI Floating Rate Bonds is a safe way to earn attractive interest rates and ensure capital preservation in this high inflationary environment. Since they are issued by RBI, this adds a layer of security for investors, making RBI Floating Rate Bonds an attractive investment option.

Read our full blog about RBI Floating Rate

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