National Pension Scheme - NPS for NRIs

Eligibility Criteria for NRIs who Wish to Open NPS Account

NRIs who wish to open NPS accounts must first check whether they meet the following eligibility criteria:

1. Age: Between 18 and 60 years old.
2. Must comply with KYC norms.
3. PIOs and OCIs are not eligible.

NPS Contributions

1. The contributions towards NPS must come from either an NRE account or NRO account.
2. Minimum contribution on opening the account: Rs.500.
3. Minimum amount per contribution: Rs.500.
4. Minimum contribution per annum: Rs.6,000.

Features and Benefits of NPS account for NRI

1. Investment portfolio is highly diversified and affords the investor the flexibility to choose in what ratio funds should be allocated across investment options.
2. Investments can be made in a variety of asset classes like Equity, Corporate Bonds, and Government Securities.
3. Up to 85% of the funds can be diverted to Equity, or Corporate Bonds, or Government Securities – depending on the risk appetite of the investor.
4. There are two investment options:
   1. Active Choice: Where the NRI investor decides the asset classes and ratios of investment.
   2. Auto Choice: Where the investment will be done on behalf of the NRI investor, based on his or her age.
5. Every subscriber is given a Permanent Retirement Account Number (PRAN) Card with a unique 12-digit number.
6. There are two available sub-accounts under the NPS account scheme:
   1. Tier – I accounts: Withdrawals are allowed for up to 25% of the borrowers own contribution. This is subject to the Withdrawal and Exit Regulations.
   2. Tier – II accounts: This account is allowed as an add-on to Tier – I accounts, as a savings facility. Withdrawals are permitted as and when the investor wishes from Tier – II accounts.
7. NPS accounts can be operated from any location in the country.

How to Register and Apply for NPS Online

In order to apply for NPS, the NRI applicant must:

1. Acquire an NRI NPS Application Form from PFRDA, NPS Trust Website, or at a participating bank.
2. Duly fill up the form with mandatory information and necessary attachments.
3. Submit the form to the NRI Bank Branch in India.
4. Once the NRE / NRO account particulars have been verified, the bank will forward the application to the Central Record keeping Agency (CRA) directly.
5. Deposit the initial deposit cheque.
6. The application will be digitized.
7. PRAN will be generated by the CRA.
8. An email or SMS will be sent to the NRI applicant intimating him or her about the PRAN number.
9. All subsequent transactions can be made online.

Applicable Charges for NPS Registration

Rules for Exit and Withdrawal NPS Scheme

• For exit from the scheme before the age of 60:
  a) Compulsory annuitisation: Minimum of 80%.
  b) Lump Sum withdrawal: Maximum of 20%.
  c) If the total corpus is less than Rs.1,00,000 complete withdrawal.
• For exit upon attaining the age of 60:
  a) Compulsory annuitisation: Minimum of 40%.
  b) Lump Sum withdrawal: Maximum of 60%.
  c) If corpus is less than Rs.2,00,000 complete withdrawal.
  d) Investors can stay invested in the scheme up to the age of 70 years.
  e) Purchase of annuity can be deferred for a maximum period of 3 years at the time of exiting the scheme.
• Exit upon death of the subscriber:
  a) Nominee will be instantly eligible to receive 100% of the funds in the NPS account.
  

Grievance Redressal as per Regulation 31 of  PFRDA (Redressal of Subscriber Grievance) Regulations, 2015: 

The details of the Ombudsman appointed are available on the PFRDA website – https://www.pfrda.org.in/. 

At present, Shri Narender Kumar Bhola has been appointed as the new Ombudsman in terms of the PFRDA (Redressal of Subscriber Grievance) Regulations, 2015. 

Details of the ombudsman are as given below: 

Shri Narender Kumar Bhola 

Pension Fund Regulatory and Development Authority  

B-14/A, Chatrapati Shivaji Bhawan,  

Qutab Institutional Area, Katwaria Sarai, New Delhi- 110016  

Chhatrapati Shivaji Bhawan,  

Email ID: ombudsman@pfrda.org.in  

Landline No.: 011 -26517507 (Ext : 188)