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    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.

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