The Pension Fund Regulatory and Development Authority (PFRDA) has revised the National Pension System (NPS) investment guidelines, permitting NPS funds to invest in rupee-denominated bonds issued by the New Development Bank (NDB), effective May 13, 2026. This amendment expands the investment options for both government and private sector NPS schemes, which previously allowed investments only in bonds from institutions like the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), and Asian Development Bank (ADB). While the investment universe has broadened, PFRDA confirmed that all existing conditions, including credit rating requirements of AA or above and maturity specifications, will remain unchanged. The NPS is a voluntary defined contribution pension system that enables individuals to build a retirement corpus through regular contributions. Corporate employers can contribute up to 10% of an employee's salary to their NPS account, while Central Government employees can receive up to 14%. Additionally, tax benefits are available for both employee and employer contributions under various sections of the Income Tax Act.