The Reserve Bank of India on Friday unveiled a set of measures to deepen financial markets, including a major change to the voluntary retention route (VRR) for foreign investors. By scrapping the Rs 2.5 lakh crore cap and offering greater operational flexibility, the RBI aims to make long-term FPI participation in India’s bond market smoother and more predictable. “The VRR has been witnessing active investment by FPIs, and over 80% of the current investment limit of Rs 2.5 lakh crore has been utilised. With a view to ensuring predictability about the availability of investment limits under the VRR and to further increase ease of doing business, it has been decided that investments under the VRR shall now be reckoned under the limit for FPI investments under the general route,” the RBI said. It added that it will provide other operational flexibilities to FPIs, who invest under VRR.