The Reserve Bank of India (RBI) has doubled the investment limit under the Voluntary Retention Route (VRR) for foreign portfolio investors (FPIs) to Rs 1,50,000 crore “with a view to attract long-term and stable FPI investments into debt markets”.
After the route was opened on March 1, 2019, an amount of Rs 75, 000 crore was offered for investment in two tranches so far. As on December 31, 2019, around Rs 54,300 crore has already been invested under the scheme. Based on the feedback received, and in consultation with the government, the RBI has made certain amendments in the scheme to increase its operational flexibility which will be open for allotment from January 24, 2020, RBI said.
“The investment limit under VRR has been increased to Rs 150,000 crore. The investment limit available for fresh allotment will accordingly be Rs 90,630 crore (net of extant allotments and adjustments) and it will be allotted under the VRR–Combined category,” the RBI said.