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RBI resets interest rate for FRBs at 5.16%
Mumbai, June 07: RBI has reset interest rate on floating rate bonds, 2009, applicable for the half year, June 6 - December 5, 2003, at 5.16 per cent per annum.
The variable base rate for payment of interest was to the average rate (rounded off up to two decimal places) of the implicit yields at cut-off prices of the last six auctions of the government of India's 364-day Treasury Bills held up to the commencement of the respective half-yearly coupon period, it said.
The variable base rate based on the average rate of the implicit yields at cut-off prices of the last six auctions of the GOI's 364-day T-bills held up to June 5, 2003 works out to 5.17 per cent.
The mark-up decided in the auction held on December 5, 2001, was minus 0.01 and the coupon rate has thus been fixed at 5.16 per cent, it added.
Bureau Report