ANIReserve Bank of India (RBI) has increased the limit for foreign portfolio investors (FPIs) to invest in the local debt market under the voluntary retention route (VRR) by Rs 1 lakh crore to Rs 2.5 lakh crore, likely to be effective from today.
"The route sought to provide a separate channel, broadly free of macroprudential controls, to FPIs with long-term investment horizons. A dedicated investment limit of Rs 1.5 lakh 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 proposed to increase the investment limit under VRR by ₹1 lakh crore to ₹2.5 lakh crore with effect from April 1, 2022. The revised investment limits are being notified today," governor Shatikanta Das in a statement accompanying the monetary policy review.
The VRR for investment in government and corporate debt securities by FPIs was introduced on March 01, 2019 with a view to facilitating stable investments in debt instruments in the country. The route sought to provide a separate channel, broadly free of macroprudential controls, to FPIs with long-term investment horizons.
A dedicated investment limit of ₹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 proposed to increase the investment limit under VRR by ₹1,00,000 crore to ₹2,50,000 crore with effect from April 1, 2022.
The revised investment limits are being notified today, governor Das said.
"The route sought to provide a separate channel, broadly free of macroprudential controls, to FPIs with long-term investment horizons. A dedicated investment limit of Rs 1.5 lakh 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 proposed to increase the investment limit under VRR by ₹1 lakh crore to ₹2.5 lakh crore with effect from April 1, 2022. The revised investment limits are being notified today," governor Shatikanta Das in a statement accompanying the monetary policy review.
The VRR for investment in government and corporate debt securities by FPIs was introduced on March 01, 2019 with a view to facilitating stable investments in debt instruments in the country. The route sought to provide a separate channel, broadly free of macroprudential controls, to FPIs with long-term investment horizons.
A dedicated investment limit of ₹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 proposed to increase the investment limit under VRR by ₹1,00,000 crore to ₹2,50,000 crore with effect from April 1, 2022.
The revised investment limits are being notified today, governor Das said.
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