Voluntary Retention Route (VRR):

• RBI introduced a separate channel, the ‘Voluntary Retention Route’ in 2019 to enable FPIs to invest in debt markets in India. 
• Investments through VRR are free from macro-prudential and other regulatory prescriptions applicable to FPI investments in debt markets, provided FPIs voluntarily commit to retain a required minimum percentage of their investments in India for a particular period. The minimum retention period was kept at three years.
• The Reserve Bank of India (RBI) permitted more time to foreign portfolio investors (FPIs) in adhering with the condition under the Voluntary Retention Route (VRR).

Aim of VRR:

• The VRR channel is aimed at attracting long-term and stable FPI investments into debt markets, while providing FPIs with operational flexibility to manage their investments.
• VRR scheme tallows FPIs to participate in repos and also invest in exchange traded funds that invest in debt instruments.

Eligibility of VRR:

• Any entity registered as an FPI with SEBI is eligible to participate through this Route.