Voluntary Retention Route: RBI reopens Voluntary Retention Route with investment limit of Rs 2,50,000 cr

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 Rs 1,50,000 crore. Out of this, around Rs, 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.

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The increased investment limits shall be open for allotment from April 01, 2022 as per the following details:

The investment limit under VRR has been increased to Rs 2,50,000 crore.
The investment limit available for fresh allotment shall accordingly be Rs 1,04,800 crore (net of extant allotments and adjustments); and shall be allotted under the VRR–Combined category.
The minimum retention period shall be three years.
Investment limits shall be available ‘on tap’ and allotted on a ‘first-come, first-served basis.
The ‘tap’ shall be kept open till the limit is fully allotted.
FPIs may apply for investment limits online to Clearing Corporation of India Ltd. (CCIL) through their respective custodians.
CCIL will separately notify the operational details of the application process and allotment.