Simple steps to open NPS account for NRIs in India

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NPS for NRIs in India

Simple steps to open NPS account for NRIs

Reserve Bank of India (RBI) recently allowed NRIs (Non-resident Indians) and NROs (Non-Resident Ordinary) to invest in National Pension System (NPS) to create a retirement/pension corpus in India. Any individual aged between 18-60 years complying with KYC norms can open NPS account. OCIs (Overseas Citizen of India) and PIOs (Persons of Indian Origin) are not eligible to open NPS. Either NRE or NRO accounts are considered as source of contributions in NPS. In NPS investment, individual subscriber has a choice of diversified asset classes like Equity, Corporate bonds and Government Bonds, as per his/her risk appetite. NRIs also have the option of selecting Pension Fund Manager. If the subscriber has taxable income in India, he/she can get additional tax benefit of INR 50,000 over and above the usual 80C benefits.

5 steps to open NPS account for NRIs

1. Download the “NRI NPS form” from NPS Trust Website, NSDL website, PFRDA website or from your bank website.

2. Fill up the downloaded NRI NPS account opening form.

3. NRI needs to submit the filled form to her/his Bank branch in India along with copy of passport, overseas address and contact details and permanent Indian address.

4. Once bank verify the documents, 12 digit unique PRAN number (Permanent Retirement Account Number) will be allocated by CRA (Central Recordkeeping Agency).

5. Once this PRAN number is generated, it will be sent to NRIs by SMS and Email alert for all future transactions.

Contribution to NPS: Minimum contribution of account opening is INR 500 and Minimum contribution per annum is INR 6,000.

Pension/Annuity payout: Investment amount mature at the age of 60 and monthly retirement pension or annuity will be paid through direct bank transfer to the specified account only through selected Annuity Service Providers like LIC, SBI Life Insurance, ICICI Prudential Life Insurance, Bajaj Allianz Life Insurance, Star Union Dai-ichi Life Insurance, Reliance Life Insurance and HDFC Standard Life Insurance.

Grievance service for NPS:

1. Call Centre: 1800 222080 and register the issue/grievance by using T-PIN.

2. Register the grievance in website www.npscra.nsdl.co.in with the use of I-PIN, which will be allotted at the time of opening the PRAN number.

3. Subscriber can also directly send NPS Grievance form to CRA Central Grievance Management System (CGMS).

If you have any doubts regarding opening NPS account, kindly leave as comments. We would try our level best to address those.

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2 Comments

  1. Zahir says

    Are Nri individuals taxed in NPS

    1. Mohammad Ali says

      NPS will make sense only if the investor is sure of coming to India after retirement.
      When an NRI wants to return back to India, their tax slab is likely to be 30% (or higher).
      NPS is mainly targeted at NRIs in Gulf countries because they don’t have options to settle in those countries after retirement.