Insurance regulator IRDAI has permitted insurers to invest in Maharajah INR Bonds (Onshore Rupee Bonds) of the New Development Bank, an approval that assumes significance ahead of next month’s BRICS Summit in Delhi.It follows representation from the New Development Bank, seeking approval, for the NDB Maharajah INR bonds under which it proposes to raise ₹25,000 crore over a five-year period, the Insurance Regulatory and Development Authority of India (IRDAI) said communicating its approval to the insurers in a circular.The multilateral development bank, established by Brazil, Russia, India, China and South Africa (BRICS), intends to use the bond proceeds towards general corporate purposes for financing/onward lending to sustainable development, sustainable infrastructure, green, social projects in India.“The proposed onshore rupee bond issuances by NDB are covered under the definition of Securities under the Securities Contracts (Regulations) Act,1956,” IRDAI said, explaining it is permitting investments in the same to enable insurers to have more scope for investments. It will be part of the ‘approved investments’ and subject to the bonds governed by norms, if any, laid by government of India; and SEBI approval among others. If the proceeds of the bond issuances are invested in infrastructure subsectors notified under Harmonized Master List of the Ministry of Finance, investments in the bonds will qualify as infrastructure investments.While investing in the bonds, the insurers need to comply with the provisions of Section 27E of Insurance Act, 1938, that prohibits them from investing funds directly or indirectly funds of the policyholders outside India.The New Development Bank (NDB) is a multilateral development bank. According to the bank, it was established by Brazil, Russia, India, China and South Africa (BRICS) with the purpose of mobilising resources for infrastructure and sustainable development projects in emerging markets and developing countries. Published - August 27, 2026 10:01 pm IST