RBI introduces the Voluntary Retention Route for Investments by FPIs

The Reserve Bank of India has introduced a scheme named ‘Voluntary Retention Route’ (VRR) to encourage Foreign Portfolio Investors (FPIs) to undertake long-term investments in Indian debt markets.
It was announced by RBI in October 2018. Click Here to read its basics.

Here are the major points about the Scheme:

Opening and Closing Date: Investment under the VRR scheme shall be open for allotment from March 11, 2019. The investment limits under the current tranche shall be kept open till the limits are exhausted or till April 30, 2019 whichever is earlier.
Investment limits: The aggregate investment limit shall be ₹ 40,000 crores for VRR-Govt and ₹ 35,000 crores for VRR-Corp.
Retention period: The minimum retention period shall be three years.
Minimum amount in India: During the retention period FPIs shall maintain a minimum of 75% of the allocated amount in India.
Who will allot investment limit: Investment limits shall be allotted by Clearing Corporation of India Ltd. (CCIL) on ‘first come first served’ basis.

Points to remember: