IRDAI permits insurers to invest in New Development Bank’s onshore rupee bonds

Source: The Hindu | Original Published At: 2026-08-27 16:31:40 UTC

Key Points

• IRDAI has permitted Indian insurers to invest in the New Development Bank’s Maharajah INR Bonds, also known as Onshore Rupee Bonds.
• The approval follows a representation from the New Development Bank seeking permission for the bond issuance, under which it plans to raise ₹25,000 crore over five years.
• The NDB, established by BRICS, intends to use the proceeds for general corporate purposes and financing or onward lending for sustainable development, sustainable infrastructure, green, and social projects in India.
• IRDAI said the proposed onshore rupee bond issuances are covered under the definition of securities in the Securities Contracts (Regulation) Act, 1956.
• Investments in the bonds will be treated as approved investments, subject to norms laid by the Government of India and SEBI approval, among other conditions.
• If bond proceeds are invested in infrastructure subsectors notified under the Harmonized Master List, the investments may qualify as infrastructure investments.
• Insurers must comply with provisions of the Insurance Act, 1938, which prohibit direct or indirect investment of policyholders’ funds outside India.