National Pension System (NPS) is a government-sponsored pension scheme. The scheme allows a person to contribute regularly to a pension account during their working life. On retirement, the person can withdraw a part of the corpus in a lump sum and use the remaining corpus to buy an annuity to secure a regular income after retirement. NRIs can also invest in the NPS, under the Foreign Exchange Management Act. NPS will allow NRIs to invest in a mix of equities and debt and save for their retirement and it can be done online too. Here's how an NRI can open NPS account online:
1. Eligibility
NRIs aged between 18 and 60 years can open NPS account. NRIs need to have a PAN card along with a bank account in an NPS empanelled Bank for KYC verification online.
2. Websites
An NRI needs to visit the Pension Fund Regulatory and Development Authority (PFRDA) NPS Trust website https://enps.nsdl.com/eNPS/NationalPensionSystem.html—and choose eNPS. Next, he should click on Registration and then on New Registration to begin the process.
3. Details
An NRI should select the Non-Resident Indian option and choose the type of account—repatriable (NRE) or non-repatriable (NRO). After entering PAN, Passport Number and Bank Account details then select the country of residence from the dropdown list. Once details are submitted, an NPS registration form will be displayed wherein the NRI must enter Personal, Contact and Bank Details.
4. Scheme Details
An NRI needs to choose the pension fund manager from the drop-down list and investment mode—Active or Auto. If he selects Active, then he has to specify the percentage allocation in the different asset classes. In case of Auto mode, the allocation will be done automatically based on a pre-decided strategy, depending on the age of the person opting for the scheme. He can register up to three nominees.
5. Photo & Signature
The NRI must upload a scanned signature and photograph in jpg format of size 4-12kb.
6. Initial Contribution
An initial contribution of Rs 500 needs to be made through the selected bank. After this, a Permanent Retirement Account Number (PRAN) will be generated.
7. Submission of Form
Once the registration process is completed, an NRI must print the system-generated form, paste photograph, add a signature and dispatch the same to the Central Record Keeping agency of NPS within 90 days. Failure to do so will lead to freezing of the account.
The information provided in this article is generic in nature and for informational purposes only. It is in no manner can act as a substitute for specific advice in your own circumstances. We strongly recommend you to seek the official website of NPS https://enps.nsdl.com/eNPS/NationalPensionSystem.html for detailed information and further assistance.
India is a vast country and a mystery to most. Those who live in it, those who now live outside of India or those who are just visiting. We, at NRIClub™, serve as a centralized hub of information for the residents, non-residents and travellers who are not familiar with various aspects of this great country. We are a unique, online portal providing all of the information to our users that could be relevant to them.
India is a vast country and a mystery to most. Those who live in it, those who now live outside of India or those who are just visiting. We, at NRIClub™, serve as a centralized hub of information for the residents, non-residents and travellers who are not familiar with various aspects of this great country.
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