Overview
When an Indian citizen relocates to another country, their National Pension System (NPS) account does not automatically close. The Pension Fund Regulatory and Development Authority (PFRDA) has issued guidance for non-resident Indians (NRIs) on how the NPS operates after relocation.
What NRIs can do with NPS
- Tier I can be maintained and contributions can be made from abroad using funds from NRE or NRO accounts.
- Tier II is not available for activation for NRIs.
- To keep the account active, ensure your PRAN is valid and your contact details are up to date with the NPS registrar.
Practical considerations for NRIs
- Link your NPS with your NRE/NRO accounts when sending contributions from outside India.
- Regular contributions to Tier I can continue as long as the account remains active, subject to regulatory provisions.
- Consult a tax advisor to understand how NPS contributions are treated under Indian tax laws for NRIs, as rules can vary with residency status.
For official guidance, NRIs should refer to the PFRDA’s statements and consult their NPS service provider for the latest requirements, as regulations can evolve.
