Under the NPS All Citizen model, NRIs have the option of selecting a pension fund management and exercising their investment options. The fund is invested in various classes of securities by the appointed pension fund management, as per the Pension Fund Regulatory and Development Authority’s (PFRDA) investing criteria
Non-Resident Indians (NRIs) can open National Pension System (NPS) accounts who comply with current KYC requirements. NRIs can choose a pension fund management company and exercise their investing options. Postretirement, they can take a portion of the corpus and invest the remainder in an annuity, which will provide them with a steady income. Investors can also get tax benefits for investing in NPS.
TO OPEN AN NPS ACCOUNT, INVESTORS MUST SUBMIT THE FOLLOWING DOCUMENTATION:
A completed subscriber registration form
A copy of your passport;
Proof of address, if your local address differs from the address on your passport.
Under the NPS All Citizen model, NRIs have the option of selecting a pension fund management and exercising their investment options. The fund is invested in various classes of securities by the appointed pension fund management, as per the Pension Fund Regulatory and Development Authority’s (PFRDA) investing criteria.
According to the NRI FAQ, “The investment is usually in equity(E), corporate bonds (C), and/or government securities (G). The individual subscriber has a choice of selecting an investment mix (E, C, G), as per his/her risk appetite.”
NRI contributions can be made from any of the following sources, subject to regular foreign exchange conversion rules:
NRE account
NRO account or local sources.
“When the pension/ annuity is to be paid, it shall be in local currency only (i.e. in INR). However, there is no restriction on the repatriation of a pension, whether paid as an annuity or in a lump sum. Provisions of Income Tax Act, 1961 subject to amendments from time to time, would be applicable,” according to the NPS FAQs.
Generating PRAN: You need to make a preliminary contribution via the internet (minimum amount of Rs 500). After providing the payment information, you will be directed to the payment gateway. Upon successful payment, you will be granted a Permanent Retirement Account Number (PRAN).
In the case of a repatriable eNPS NRI account, additional contributions must be made using the account supplied during the registration procedure. Initial and subsequent contributions to a non-repatriable eNPS NRI account can be made using any channel, including net banking, credit card, and debit card.
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