Voluntary Retention Route (VRR) – Enhancement of Limits

Reserve Bank of India had announced Bi-monthly Monetary Policy Statement, 2021-2022.

In March 2019, from the perspective of Financial Markets and specifically to boost investments in government and corporate debt securities, VRR was introduced for Foreign Portfolio Investor (FPIs).
This route sought to provide a separate channel, broadly free of macro-prudential controls, to FPIs with long-term investment horizons.

A dedicated investment limit of INR 1,50,000 crore was set for investments under the VRR.

Given the positive response to the VRR as evident from the near exhaustion of the current limit, it is now proposed to increase the investment limit under VRR by INR 1,00,000 crore to INR 2,50,000 crore with effect from April 1, 2022. 

#investment #india #fpi #rbipolicy #rbi #foreigninvestors

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