Mumbai, May 17: The Reserve Bank of India said on Saturday it would pay primary dealers a commission of up to 0.02 rupees (2 paise) to underwrite the auction of the 2014 floating rate bond. The central bank is due to issue an 11-year bond for 50 billion rupees on Monday through an auction, using the uniform price format.

The bond will bear an interest rate calculated at a spread of two decimal places per annum which will be decided in the auction on a variable base rate.
The base rate for interest calculation for the first year is 4.95 per cent per annum. Bureau Report