The Reserve Bank has allowed non-resident Indians (NRIs) to subscribe to the National Pension System (NPS) to provide old age income security to NRIs.
The decision in this regard is taken by RBI in consultation with the Government, to enable National Pension System (NPS) as an investment option for NRIs under FEMA, 1999.
NRIs may subscribe to the NPS governed and administered by the Pension Fund Regulatory and Development Authority (PFRDA), provided such subscriptions are made through normal banking channels and the person is eligible to invest as per the provisions of the PFRDA Act.
The NRI should pay the subscription amounts to the NPS either by inward remittance through normal banking channels or out of funds held in their NRE/FCNR/NRO account.
There will be no restriction on repatriation of the annuity/ accumulated savings.
About National Pension System (NPS)
*The National Pension System (NPS) was launched in 2004 with the objective of providing retirement income to all the citizens
*NPS was initially introduced for the new government recruits (except armed forces) and is governed and administered by the Pension Fund Regulatory Department Authority (PFRDA)
*Its aims to institute pension reforms and to inculcate the habit of saving for retirement amongst the citizens
*It has been provided for all citizens of the country including the unorganised sector workers, on voluntary basis from 1 May 2009.