 "rbi governor, shaktikanta das")
The Reserve Bank of India’s (RBI’s) decision to raise limits under the Voluntary Retention Route (VRR) will provide additional sources of capital for the domestic debt market, according to market players.
The limit enhancement from the existing Rs 1.5 trillion to Rs 2.5 trillion comes at a time when interest rates in markets such as the US are set to go up, raising the spectre of flight of foreign capital from India. The money coming in through the VRR route may be more stable as it comes with a lock-in of three years.
“The proposed increase in VRR limits can
