Who are eligible to have a NPS account for NRI and OCI?
- People holding an OCI card and NRIs.
- Individuals must be between the ages of 18 to 70 years at the time of registration.
- The subscribers must successfully comply with the KYC requirements.
What is NPS For NRI & OCI?
NRIs can invest in NPS, a retirement savings scheme in India, through their NRE/NRO accounts. It offers long-term financial security and tax benefits.
Individuals can open their account and invest via regular contributions. These contributions are further invested in various market-linked assets like equities, corporate bonds, and government funds as per the choice of the individual.
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NPS helps you manage your savings today, to secure your future. Pave the road to your second innings with easy saving plans.
How NPS for NRI and OCI work?
At 30 years of age, Nakul invests ₹10,000 monthly in NPS for a secure retirement and tax benefits, aiming for life goals.
*Assuming growth rate at 10%
How to join NPS for NRI and OCI?
Joining NPS is made very easy and by following 3 simple steps you can start your retirement planning:
- Click here to fill in your personal details.
- Upload your PAN, Copy of your signature and cancelled cheque.
- Select the Bank Account Status i.e., Non-Repatriable account or Repatriable account
- Provide the NRE/NRO bank account details and upload scanned copy of passport
- Select the preferred address for communication i.e., Overseas Address or Permanent Address
- Make online investment and your PRAN is created.
What are the Tax Benefits in NPS for NRI and OCI?
- NPS provides generous tax deductions up to Rs.1.5 lakhs under Section 80C.
- An additional deduction of Rs.50,000 under Section 80 CCD(1B), allowing investors to save more..
Frequently Asked Questions on NPS For NRI & OCI?
Here are some frequently asked questions about NPS For NRI & OCI
NPS Related FAQs
National Pension System (NPS) is a pension scheme initiated by the Government of India with the ambition to create a pensioned society in the country. The Scheme is regulated by Pension Fund Regulatory and Development Authority (PFRDA).
Any individual, whether Indian resident or non–resident can join the Scheme subject to following conditions:
- One should be between 18 – 70 years of age as on the date of submission of the application.
- One should comply with the prescribed Know Your Customer (KYC) norms as detailed in the Subscriber Registration Form for NPS.
Yes. NRIs and OCIs are also allowed to join NPS.
One can have only one active PRAN at a time.
Tier I Vs Tier II
Tier II NPS account is optional. Subscriber can open Tier II NPS account post opening their Tier I account.
No. Individual cannot apply for only Tier II NPS Account, it can be opened while creating NPS account or later once Tier I is opened.
NPS Account maintenance
Yes. A Subscriber needs to submit the request, along with the Service Charge of Rs. 30 plus GST, to us for initiating the modification to their PoP. Alternatively, they can also update their profile using the App provided by CRA.
Yes. A Subscriber can place request for issuance of duplicate PRAN Card. Charges will be deducted by CRA for issuing duplicate PRAN Card.
Yes. Monthly statement, containing details of the unit holdings, is issued by CRA to Subscriber’s registered email address.
Subscriber can view / print the SOTs by logging into CRA website using their PRAN and password.
The Subscriber must have the following scanned documents readily available to start the online NPS registration process:
- Passport Size Photo in colour
- Self-attested scan copy of PAN
- Self-attested scan copy of Address Proof
- Scanned Copy of Cancelled Cheque
- Scanned copy of Subscriber’s Signature specimen
Subscribers can start the process by visiting https://www.dsppension.com/
Contribution towards NPS
Subscriber can contribute towards NPS directly using the NPS app provided by CRA.
If a Subscriber opts for Tier I account only, then they need to contribute a minimum of Rs.500 at that time. However, if the Subscriber opts for Tier I + Tier II, then they needs to deposit a minimum of Rs.1500/-plus GST.
Subscriber has the flexibility to contribute anytime they want. There are no restrictions on the number of times one can invest.
Yes, NPS offers this flexibility. One can decide the contribution amount as per their planning.
Yes, you can start your SIP by opting for D-Remit, the NPS app by CRA.
Investment of Funds under NPS
NPS offers 4 funds to subscriber - Equity (E), Corporate Bonds (C) Government Securities (G) and Alternate Investment (A).
NPS restricts investment towards Equity to up to 75% of contribution amount for Tier I. However, a subscriber can invest up to 100% in Corporate Bonds or Government Debt Funds. Alternate Investment fund option is there for Tier I NPS accounts only and with a restriction of 5%. You can invest 100% towards Equities Funds in Tier II.
Yes. The Subscriber can exercise this option of changing their scheme preference four times in a financial year.
Unfreezing Your PRAN
In case of a situation where your PRAN is frozen due to contribution of less than Rs.1,000 in a year, then you need to write to your PoP to activate your PRAN so that you can make the contribution. Once the PRAN is active, subscriber needs to contribute a minimum of Rs.500.
Tier II does not freeze as it is voluntary account. However, if Tier I account is frozen, then further investments in Tier II will not be accepted.
Services like profile modification, changes in investment portfolio, changes in sector, etc. are called non–financial transactions.
Subscriber needs to pay Rs.30 + GST by Cheque at the time of submitting request for process any Non–Financial transactions.
Withdrawal from NPS Account
Withdrawal from Tier I NPS account would be permitted for specific purposes like child’s marriage, higher education, treatment of critical illnesses, etc. One can only withdraw from the total voluntary contribution done by them.
Subscriber can initiate the request online using login ID and Password provided by CRA to access NPS details.
Exit from NPS
A subscriber can pre-exit from NPS after 5-years of account opening or anytime after the age of 60.
Primary objective of Tier I NPS Account is to help the subscriber create a Corpus which can be used at the time of retirement to buy pension for the Subscriber.
| Exit before 60-years | Exit post 60-Years |
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In case of exit from NPS at retirement age, the Subscriber can choose to defer the annuity / withdrawal as per the prevailing rules.
However, in case of pre–mature exit from NPS (before attaining the age of retirement), the Subscriber does not have option to defer.
The fund would continue to remain invested as per the choice of the subscriber as these were at the time of vesting.
Investment in Annuity
In case of pre-mature exit, the Subscriber needs to invest in Annuity immediately. Depending on the Annuity Plan one has invested in, annuity would start.
Subscriber can choose the ASP at the time of exit. Once the pension starts, then the subscriber cannot change the ASP.
Yes. A Subscriber can use 100% of corpus to buy annuity.
It will depend on the kind of annuity plan opted by the Subscriber. It is important for subscribers to understand the rules and options available to them under various annuity options.
In case of untimely Death
In case of death of the Subscriber, nominee can claim the entire corpus of the subscriber.
The nominee needs to submit a withdrawal request to the PoP. After the request is processed, a Cheque is issued to the nominee.
No. Death proceeds in the hands of Nominee is tax free.