The Pension Fund Regulatory and Development Authority issued Circular No. PFRDA/2026/29/REG-PF/06 dated May 13, 2026, amending the National Pension System (NPS) investment guidelines to include Rupee Bonds issued by the New Development Bank within the eligible investment universe. The amendment follows in-principle approval granted by the Department of Economic Affairs, Ministry of Finance, Government of India, for issuance of INR-denominated bonds by the New Development Bank. Under the revised guidelines, Rupee Bonds issued by the International Bank for Reconstruction and Development, International Finance Corporation, Asian Development Bank, and New Development Bank are now eligible investments under both Government Sector and Non-Government Sector investment guidelines of NPS. The circular clarifies that all existing investment conditions, including minimum credit rating requirements of AA or above and applicable maturity norms, will continue unchanged. The amendment comes into effect immediately and expands investment avenues available to pension funds under the NPS framework.
Pension Fund Regulatory and Development Authority
Circular No.: PFRDA/2026/29/REG-PF/06. Dated: 13.05.2026
To
All Pension Funds, NPS Trust and all Stakeholders.
Subject: Inclusion of Rupee Bonds issued by New Development Bank in the eligible investment universe under NPS.
In pursuance of the in-principle approval accorded by the Department of Economic Affairs, Ministry of Finance, Government of India, to the issuance of INR-denominated Bonds by the New Development Bank (NDB), PFRDA hereby amends its extant Investment Guidelines under NPS as provided below:
| Reference | Existing provisions of Guidelines | Amended provisions of Guidelines |
| Govt Sector Investment Guidelines dated 10.12.20261 Category ii (c) of Debt Instruments and Related Investments: | Rupee Bonds issued by institutions of the International Bank for Reconstruction and Development, International Finance Corporation and Asian Development Bank. | Rupee Bonds issued by institutions of the International Bank for Reconstruction and Development, International Finance Corporation, Asian Development Bank and New Development Bank. |
| Non-Govt Sector Investment Guidelines dated 10.12.20262 Category (b) of Scheme / Asset Class C: | Rupee Bonds issued by institutions of the International Bank for Reconstruction and Development, International Finance Corporation and Asian Development Bank.
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Rupee Bonds issued by institutions of the International Bank for Reconstruction and Development, International Finance Corporation, Asian Development Bank and New Development Bank.
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2. All other conditions, including extant credit rating requirements (AA or above) and applicable maturity specifications prescribed under the Investment Guidelines, shall remain unchanged.
3. This circular shall come into force with immediate effect.
Yours sincerely,
(Executive Director)
