RBI removes ₹2.5 lakh crore cap on corporate bond investments
The Reserve Bank of India just scrapped the ₹2.5 lakh crore limit on Voluntary Retention Route (VRR) investments, while investments through VRR will remain subject to the existing overall limits applicable to government bonds, state loans and corporate bonds and to VRR commitment conditions.
Announced by RBI Governor Sanjay Malhotra on February 6, 2026, the repo rate stays at 5.25%.
Repo rate stays at 5.25%
This move is all about making India's debt market more attractive and open, especially as the economy is expected to grow faster—GDP growth for FY2025-26 (Apr 2025-Mar 2026) is now forecast at 7.3%.
With inflation staying calm and only a fraction of the corporate bond limit actually being used, removing the VRR cap could mean more global money flowing in, deeper markets, and maybe even better opportunities for businesses and young professionals down the line.