On a review of Foreign Exchange Management (Debt Instruments) Regulations, 2019, Reserve Bank of India vide notification no. RBI/2019-20/151 dated January 23, 2020, introduces the following changes to the Directions governing investment through the Voluntary Retention Route (VRR):

  • The Investment Cap is increased from 75,000 crores to 1,50,000 crores.
  • FPIs that have been allotted investment limits under VRR may, at their discretion, transfer their investments made under the General Investment Limit to VRR.
  • FPIs are also allowed to invest in Exchange Traded Funds that invest only in debt instruments.
  • The revised scheme will be open for allotment from January 24, 2020.


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