What is the interest rate on investing in G-Secs?
The interest rate on Government Securities (G-Secs) is not fixed in advance but determined through periodic auctions conducted by the Reserve Bank of India (RBI). This rate—also known as the coupon—reflects multiple market-driven factors such as liquidity, inflation outlook, and sovereign risk profile.
How G-Sec interest rates are set?
- Determined at RBI auctions: Conducted on behalf of the Government of India.
- Based on market forces: Factors include inflation, interest rate expectations, and investor demand.
- Coupon rate: The fixed annual interest paid on the face value of the bond, usually semi-annually.
How to check the current G-Sec interest rate?
- Login to the FYERS Debt Market portal
- Browse available G-Secs
- Refer to the ‘Coupon’ field to see the interest rate associated with each bond
What if...
| Scenario | Resolution |
|---|---|
| Coupon rate isn't visible | Ensure you're viewing active bonds via the Debt Market portal. |
| You’re unsure what the rate means | The coupon is the annual percentage paid on face value—e.g., 7% on ₹100 = ₹7 per year. |
Always compare the coupon rate with the bond's purchase price to understand the effective yield you’ll receive.
Last updated: 26 Jun 2025
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