CURRENT AFFAIRS

Detailed explanation-1: -The investment limit under the VRR is increased to ₹2,50,000 crore from ₹1,50,000 crore. The updated Directions are as given in the Annex. 5. These Directions shall be applicable with effect from April 1, 2022.

Detailed explanation-2: -The investment limit under VRR has been increased to ₹2,50,000 crore. The investment limit available for fresh allotment shall accordingly be ₹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.

Detailed explanation-3: -No FPI shall be allotted an investment limit greater than 50% of the amount offered for each allotment by tap or auction in case there is a demand for more than 100% of amount offered. The minimum period of retention shall be three years or as decided by the RBI for each allotment by tap or auction.

Detailed explanation-4: -A dedicated investment limit of Rs 1.50 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 Rs 1 lakh crore to Rs 2.5 lakh crore with effect from April 1, 2022.

Detailed explanation-5: -Voluntary Retention Route UPSC. Voluntary Retention Route (VRR) refers to a channel brought about by the Reserve Bank of India (RBI) to enable Foreign Portfolio Investments (FPIs) to invest in India’s debt markets.