New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    The Limit for Foreign Portfolio Investments under

    Voluntary Retention Route (VRR) is set to be enhanced to how much from 01.04.2022 by RBI:
    A Rs 1.5 lakh crores Correct Answer Incorrect Answer
    B Rs 1 lakh crores Correct Answer Incorrect Answer
    C Rs 2.5 lakh crores Correct Answer Incorrect Answer
    D Rs 2 lakh crores Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The investment limit under VRR has been increased to ₹2,50,000 crore. RBI, in its statement dated October 05, 2018 had announced a separate scheme called ‘Voluntary Retention Route’ (VRR) to encourage Foreign Portfolio Investors (FPIs) to undertake long-term investments in Indian debt markets. Under this scheme, FPIs have been given greater operational flexibility in terms of instrument choices besides exemptions from certain regulatory requirements.

    Practice Next