The Reserve Bank of India (RBI) introduced the Voluntary Retention Route (VRR) for Investments by Foreign Portfolio Investors (FPIs) on March 01, 2019. An amount of ₹ 75, 000 crores was offered for investments in two tranches so far. As of December 31, 2019, around ₹ 54,300 crores have already been invested under the scheme. Based on the feedback received, and in consultation with the Government, the Bank has made certain amendments in the scheme to increase its operational flexibility. The amendments have been notified today, vide A.P. (DIR Series) Circular No. 19 dated January 23, 2020.
The revised VRR scheme shall be open for allotment from January 24, 2020, as per the following details:-
- The investments limit under VRR has been increased to ₹ 1,50,000 crores.
- The investments limit available for fresh allotment shall accordingly be ₹ 90,630 crores(net of extant allotments and adjustments); and shall be allotted under the VRR–Combined category.
- The minimum retention period shall be three years.
- Investment limits shall be available ‘on tap and allotted on ‘first come, first served’
- The ‘tap’ shall be kept open until the limit is fully allotted.
- FPIs may apply for investment limits online to Clearing Corporation of India Ltd. (CCIL) through their respective custodians.
- Clearing Corporation of India Ltd. (CCIL) will separately notify the operational details of the application process and allotment.
