RBI’s Update on Floating Rate Savings Bonds 2034 On April 29, 2024, the Reserve Bank of India (RBI) announced an 8% interest rate on the Floating Rate Savings Bond (FRSB) 2034, effective from April 30, 2024, to October 29, 2024. This bond, maturing in 2034, is tied to the market’s conditions with its interest rates pegged to the average yield of recent short-term government debt auctions, specifically Treasury Bills, plus a fixed margin of 0.98%. The bonds, offering a semi-annual payout without cumulative interest, require a minimum investment of Rs 1000, without an upper limit. The interest payments are scheduled for January 1 and July 1 annually.
Benefits of FRSBs:
- Security: Guaranteed by the Government of India, ensuring safety for the investors.
- Flexibility: Interest rates can increase if the benchmark rates rise, benefiting the investors.
RBI Withdraws Registration of Acemoney India Over Irregular Lending Practices The RBI has revoked the Certificate of Registration (CoR) of Acemoney (India) Limited, a Delhi-based NBFC, citing severe irregularities in its lending practices. Established in 2016, Acemoney was found non-compliant with RBI’s risk management and customer privacy regulations, particularly in its digital lending operations through third-party apps like ActLoan and NiceCash. The cancellation bars the company from operating as a Non-Banking Financial Institution under the RBI Act, 1934. Acemoney initially received its CoR in February 2017.
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