RBI has approved National Pension System (NPS) as an investment for all NRIs. All non-residents can invest in the National Pension Scheme as an old-age income security. RBI now allows all NRIs to subscribe to this pension scheme. The scheme managed by Pension Fund Regulatory and Development Authority.
Features of National Pension System (NPS) for NRIs
- Additional tax benefits for investments up to Rs 50,000
- No ceiling on the investment amount
- Investment routed through normal banking channels
- Minimum annual subscription under NPS is Rs 6,000
- Subscription amounts should be paid by inward remittance or out of funds held in NRE/FCNR/NRO account
- NPS investments mature when the investor turns 60
- No restriction on repatriation of the accumulated savings
- In case of corpus is less than Rs 2 lakh, the entire sum is allowed to withdrawn
- IF the amount is more than 2 lakh, put at least 40% of the corpus into an annuity to get a monthly pension
How to Apply for National Pension System (NPS) for NRIs
Any citizen of India, whether resident or non-resident can apply for this pension. Any Individuals who are aged between 18 – 60 years (on the date of submission) can apply for this to the POP/ POP-SP.
An NRI can open NPS account as prescribed by RBI and FEMA from time to time. Even though they have any other Provident Fund/ pension funds of non-government / private entities, can still invest in NPS.
Documents Required for Filling Application
- Completely filled in subscriber registration form
- Proof of Identity
- Proof of Address
- Age/date of birth proof
In order to open an NPS account, connect with authorized entities called Points of Presence (POP’s). Almost all the banks (both private and public sector) offers this facility. POP-SP location can be accessed through website of PFRDA. You can check which bank in your place offers this facility. Open a NPS account through the Point of Presence (POP) by filling up of necessary form. Carry above mentioned documents
Once the application form submitted, you will get a 17 digit receipt number provided by POP-SP. Using this check the status of application by accessing CRA website. Once the PRAN is generated, you will get email alert as well as a SMS alert to the registered email ID and mobile number. Every individual subscriber gets a Permanent Retirement Account Number (PRAN) card with 12 digit unique number.
How to Withdraw the Benefits under NPS?
- Submit a withdrawal application form to the concerned POP along with the documents specified
- CRA in turn would register your claim and processes the application and settles the account.
Documents Need to be Submitted with withdrawal Forms
- PRAN card in original
- Attested copy of Proof of Identity (e. g. Passport, Aadhar Card, PAN Card, Valid Driving License, Voter ID Card etc.)
- Attested copy of Proof of Address (e. g. Passport, Aadhar Card, Valid Driving License, Voter ID Card etc.)
- Cancelled cheque (containing Subscriber Name, Bank Account Number and IFS Code) or