Interest Rates in India
Two benchmark interest rates: the overnight call money rate, which moves closely with RBI policy, and the yield on 10-year government bonds. Both are monthly averages from the OECD, published on FRED. The RBI repo-rate history is not yet connected.
Levels, highs and lows
| Rate | Latest | 5-year average | Highest | Lowest | Data from |
|---|---|---|---|---|---|
| Call money rate | 5.50% | 5.90% | 12.00% Oct 1991 | 4.25% Jun 2020 | Jan 1968 |
| 10-year G-Sec yield | 6.78% | 6.90% | 8.99% Apr 2014 | 5.81% Jul 2020 | Dec 2011 |
OECD Main Economic Indicators, via FRED (Federal Reserve Bank of St. Louis), series IRSTCI01INM156N. Data 1 Jan 1968 to 1 Jul 2026. OECD Main Economic Indicators, via FRED (Federal Reserve Bank of St. Louis), series INDIRLTLT01STM. Data 1 Dec 2011 to 1 Jul 2026.
Year by year (December averages)
show table
| Year | Call money rate | 10-year G-Sec yield |
|---|---|---|
| 2025 | 5.50% | 6.63% |
| 2024 | 6.75% | 6.78% |
| 2023 | 6.75% | 7.22% |
| 2022 | 6.43% | 7.29% |
| 2021 | 4.25% | 6.44% |
| 2020 | 4.25% | 5.89% |
| 2019 | 5.40% | 6.85% |
| 2018 | 6.75% | 7.37% |
| 2017 | 6.25% | 7.35% |
| 2016 | 6.75% | 6.53% |
| 2015 | 7.75% | 7.79% |
| 2014 | 9.00% | 7.96% |
| 2013 | 8.75% | 8.88% |
| 2012 | 9.00% | 8.14% |
| 2011 | 6.00% | 8.56% |
| 2010 | 6.00% | — |
| 2009 | 6.00% | — |
| 2008 | 6.00% | — |
| 2007 | 6.00% | — |
| 2006 | 6.00% | — |
| 2005 | 6.00% | — |
| 2004 | 6.00% | — |
| 2003 | 6.00% | — |
| 2002 | 6.25% | — |
| 2001 | 6.50% | — |
Monthly averages for December of each year.
Returns of bond and cash funds
| Series | 1Y | 3Y | 5Y | 10Y | 15Y | 20Y | Max fall | Data to |
|---|---|---|---|---|---|---|---|---|
| 10-year G-Sec (bond fund) | 2.2% | 6.3% | 5.2% | 7.1% | 8.2% | 7.9% | −5% | 1 Oct 2026 |
| Cash (liquid fund) | 6.4% | 6.8% | 6.3% | 6.0% | 6.9% | 7.0% | 0% | 2 Oct 2026 |
Annualised (CAGR) for periods of a year or more, ending on each series' latest date. “n/a” means the series does not go back that far. Max fall: the largest fall from a previous peak over the whole history.
Fund NAVs (AMFI), after fund costs. Gilt fund: SBI 10 Year Constant Maturity Gilt Fund (Regular, growth). Liquid fund: HDFC Liquid Fund (Regular, growth).
Questions
- What is the call money rate?
- The rate at which banks lend to each other overnight. It usually stays close to the RBI's policy repo rate, so it is a useful free, long-running proxy for the stance of monetary policy. It was 5.50% in July 2026 (OECD via FRED).
- What is the 10-year G-Sec yield?
- The yield on Government of India bonds with about ten years to maturity, the benchmark for long-term interest rates. It was 6.78% in July 2026. When yields fall, existing bond prices rise, and the reverse.
- How do interest rates affect debt funds?
- Bond prices move opposite to yields. Funds holding longer-maturity bonds, such as 10-year gilt funds, gain more when rates fall and lose more when they rise; liquid funds hold very short-term instruments and move little. The table shows how each has done.
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