MUMBAI, Feb. 6 -- The Reserve Bank of India plans to remove the limit of Rs.2.5 trillion applicable to investments under the Voluntary Retention Route (VRR), a move seen to draw greater overseas investments.

"Investment through the VRR in each category of securities will be subject to the investment ceiling for the respective category under the general route," RBI governor Sanjay Malhotra said on Friday.

Introduced in 2019, VRR is meant to encourage foreign portfolio investors planning long-term investments in India's debt markets. Investments through VRR will be free of some regulatory norms provided FPIs voluntarily commit to retain a minimum percentage of their investments in India for a period.

This route gives FPIs more operationa...