The Government of India Postal Life Insurance Special Floating Rate Bonds,

## Report on Coupon Reset of Postal Life Insurance Government of India Special Floating Rate Security, 2022 **1. Executive Summary:** This report analyzes a notification from the Ministry of Finance, Department of Economic Affairs, regarding the coupon reset for the Postal Life Insurance Government of India Special Floating Rate Security, 2022. The core purpose of this notification is to set the interest rate for these bonds for the financial year 2021-22. The key finding is that the interest rate is set at 6.05% per annum, linked to the average yield of 10-year Government securities from the preceding calendar year (2020). This report outlines the policy's objective, key provisions, target audience, implementation aspects, and expected outcomes based on the provided text. **2. Introduction:** This report aims to provide an informative analysis of the notification concerning the coupon reset of the Postal Life Insurance Government of India Special Floating Rate Security, 2022. The analysis is based solely on the provided text from the Ministry of Finance. **3. Policy Overview:** * **Core Objective(s):** Based on the provided text, the core objective is to establish and announce the interest rate for the Postal Life Insurance Government of India Special Floating Rate Bonds, 2022, for the financial year 2021-22. This ensures clarity and transparency for investors holding these bonds. **4. Background and Rationale:** * **New Policy:** This policy establishes the interest rate for the Postal Life Insurance Government of India Special Floating Rate Bonds, 2022. The policy addresses the need to provide a clear and predictable return on investment for bondholders, based on market conditions reflected in the yield of 10-year Government securities. **5. Key Provisions / Changes:** * **New Policy:** This notification sets the interest rate for the Postal Life Insurance Government of India Special Floating Rate Bonds, 2022, at 6.05% per annum for the financial year 2021-22. The interest rate is determined by the daily average yield of 10-year Government securities in the preceding calendar year (January 01 to December 31, 2020). The interest will be payable half-yearly on September 30 and March 30. **6. Target Audience and Stakeholders:** Based on the provided text, the primary target audience and stakeholders are: * Holders of the Postal Life Insurance Government of India Special Floating Rate Bonds, 2022. * The Postal Life Insurance organization. * The Department of Economic Affairs, Ministry of Finance. * The Government of India. **7. Implementation Aspects (Inferred):** * **Responsible agency/bodies:** * Ministry of Finance, Department of Economic Affairs (Budget Division) * Government of India * **Timelines and procedures:** * Interest rate applicable for the financial year 2021-22. * Interest payable half-yearly on September 30 and March 30. * The interest rate is set based on the average yield of 10-year government securities from January 1 to December 31, 2020. **8. Expected Outcomes / Impact of Changes:** * The likely intended outcome is to provide bondholders with a transparent and market-linked interest rate for their investment. This clarity should contribute to investor confidence in the Postal Life Insurance Government of India Special Floating Rate Bonds, 2022. The defined timeline and payment schedule ensure predictable income for bondholders. **9. Conclusion:** This notification from the Ministry of Finance establishes the interest rate for the Postal Life Insurance Government of India Special Floating Rate Bonds, 2022, at 6.05% for the financial year 2021-22. This rate is linked to the average yield of 10-year Government securities from the preceding calendar year, ensuring a market-aligned return for investors. The notification provides clarity on the interest payment schedule, contributing to the overall transparency and attractiveness of these bonds.

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