2022
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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4 years
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3 years
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5 years
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2 years
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Detailed explanation-1: -Voluntary Retention Route (VRR) for Foreign Portfolio Investors (FPIs) investment in debt: The investment limit of ₹1,50,000 crore under VRR has been increased to ₹2,50,000 crore with effect from April 1, 2022. The minimum retention period shall be three years, or as decided by RBI for each allotment by tap or auction.
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: -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.
Detailed explanation-4: -Initially, the investment limit under the VRR was INR 75,000 crores, which was revised to INR 1,50,000 crores in January 2020. Vide the 2022 VRR Circular, the RBI has now further increased the investment limit to INR 2,50,000 crores.
Detailed explanation-5: -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.