VRFs are to Layer 3 as VLANs are to Layer 2 and delimit the domain of an IP network within a router. The Cisco website has a more formal definition: VRF–A VPN Routing/Forwarding instance. A VRF ...
Each PE router maintains one or more per-site forwarding tables known as VRFs. When receiving an outbound customer data packet from a directly attached CE router, the PE router performs a route lookup ...