- The Reserve Bank of India had introduced the Voluntary Retention Route (VRR) for investments by Foreign Portfolio Investors (FPIs) in debts in 2019 with an investment limit of ₹1,50,000 crore. Out of this, around ₹1,49,995 crore have been availed so far in three tranches.
- Now RBI has increased this investment limit in VRR from Rs. 1,50,000 crore to Rs. 2,50,000 crore. The increased investment limits shall be open for allotment from April 01, 2022.
- Minimum retention period: 3 years
- The investment limit available for fresh allotment shall accordingly be ₹1,04,800 crore (net of extant allotments and adjustments).
Points to remember:
- What is the revised investment limit for Voluntary Retention Route (VRR) for investments by Foreign Portfolio Investors (FPIs)?- Rs 2.5 lakh crore
- Minimum retention period under the Voluntary Retention Route (VRR) for investments by Foreign Portfolio Investors (FPIs)?- 3 years
- What is the limit for fresh allotment under the Voluntary Retention Route (VRR) for investments by Foreign Portfolio Investors (FPIs) available from April 01, 2022?- ₹1,04,800 crore
Source: RBI