How to Open an NPS Account for NRIs and OCIs?

The National Pension System (NPS) isn’t just for folks in India. If you’re a Non-Resident Indian (NRI) or an Overseas Citizen of India (OCI), you’re in on the game too. You can kickstart NPS accounts and put your money into the buzzing Indian capital markets while you’re working abroad. In this read, we’re breaking down the key deets that NRIs and OCIs should clock in when thinking about NPS investments, all based on expert advice.

Open an NPS Account for NRIs and OCIs

Why Should You Open an NPS Account as NRIs and OCIs?

“NPS is a retirement savings scheme introduced by the Indian Government and regulated by the PFRDA. It empowers individuals to contribute to their own pension accounts, fostering a sense of control and financial security,” said Senthil G, Senior member of KFintech, as quoted by financial express.

“With NPS, you can choose from various pension investment options tailored to your preferences and risk appetite. This allows you to shape your retirement savings strategy in a way that aligns with your unique goals and aspirations,” further mentioned.

How Different Nps is for a Domestic and Foreign Investor?

For foreign players like NRIs and OCIs in the National Pension System (NPS), there are some rule differences. Senthil G points out that NRIs need to pitch in a minimum of Rs. 500 initially and then kick in Rs. 6000 every year to keep things rolling—unlike the Rs. 1000 minimum for locals. Here’s a perk: NRIs don’t have a cap on how much they can invest in NPS. Also, the money they build up in NPS can be sent back home, which is something local investors can’t do.

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How to Invest?

Kurian Jose, CEO of Tata Pension, asserted, “NRIs are permitted to open accounts with banks on a repatriable and non-repatriable basis. They can invest in NPS using their non-resident external (NRE) and non-resident ordinary (NRO) bank accounts.”

“As far as regulations go with respect to PFRDA, there are no separate regulations that distinguish the resident Indian from NRIs and OCIs, apart from currency exchange norms. Also, NRIs cannot invest in Tier 2 accounts of NPS,” further mentioned.

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Rishabh Sharma

Rishabh is an experienced content writer and editor, he is working for Viralbake to cover a diversified range of categories. His articles mainly focus on providing information, being a travel guide, educating others, and also making people aware of technology, after all, he is a technophile. When not writing he can be found gaming, watching movies, and travelling.

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