The Reserve Bank of India (RBI) on February 06, 2026, issued the notification regarding the Voluntary Retention Route – Imparting predictability and increasing ease of doing business.
The following has been stated namely: -
• The following changes are made to the regulatory framework governing investments under the VRR namely: -
o The investment limits under the VRR shall be subsumed under the investment limit for FPI investments under the General Route. Accordingly, all investments through VRR in Central Government securities (including Treasury Bills), State Government Securities and corporate debt securities shall be reckoned under the investment limit for the respective securities under the General Route; and
o FPIs that have availed retention periods longer than the minimum retention period stipulated in the Directions shall have the option of liquidating their portfolio, fully or partly, and exiting the VRR after the end of the minimum retention period
This shall come into force on April 01, 2026.
[Notification No. RBI/2025-26/205]
