A 2-hole rf SQUID has been fabricated using naturally present grain boundary Josephson weaklinks in a microbridge of bulk Y-Ba-Cu-O superconductor. Periodic oscillations in voltage-flux characteristics have been observed up to 80.5 K. The spectral density of flux noise of the SQUID is 8 × 10⁻⁴ Φ₀/√Hz at 100 Hz and 77 K for open-loop mode. The SQUID has been successfully operated in flux-locked-loop mode at 77 K, demonstrating the feasiblity of the device for practical applications. In the flux-locked-loop mode the stability as well as flux noise of the SQUID has been found to improve considerably as compared to that in the open-loop mode. Various SQUID parameters have also been estimated and reported here.