The Reserve Bank of India vide its notification dated 1st July 2021 has notified that the coupon rate on FRSB 2020 (T) for the period from 1st July 2021 to 31st December 2021 and payable on January 1, 2022, remains unchanged at 7.15%
The interest on the bonds is payable half-yearly on 1st January and 1st July every year. On 1st January 2021, interest shall be payable at 7.15%. The interest rate for the next half-year (which is due on July 1, 2021) will reset every six months, the first reset being on January 1, 2021. There is no option to pay interest on cumulative basis. This would mean that once the interest on bonds are due, it will be credited to the investor’s bank account at the same time instead of payable at maturity.
