- Advertisement -
Home Investment NPS for NRI - Can NRI invest in NPS?

NPS for NRI – Can NRI invest in NPS?

- Advertisement -

NPS is a famous retirement saving scheme in India. NRI can join NPS scheme online with PAN or Aadhaar. NRI NPS investment is allowed as per the Foreign Exchange Management Act. So, NRI who wish to settle in India post-retirement for whatever reason can go for NPS investment for building a retirement corpus. NPS offers a mix of equity and debt investment. This means it turns out to be a good investment option. In this post, we will take a look at the various feature of NRI NPS account along with key features and exit/withdrawal rules.

Also Read – Top 5 Best Investment Options for NRI in India – 2019

Why & When NRI Should Invest in NPS?

Few compelling reasons for investing in NPS for NRI are given below.

  • In the past few years NPS has given above average returns to investor compared to other investment options.
  • NPS is a cost-effective option where NRI can build a good corpus and also repatriate the money easily.
  • NPS provides an additional tax benefit of Rs.50000 over and above tax benefit of section 80C.
  • It is very difficult for NRI of USA and Canada to invest in the Indian Mutual Funds and equity market due to tough compliance law under FATCA. NPS allows you to submit FATCA online.
  • If you are NRI and planning to stay in India post-retirement you can plan to invest in NPS.

Eligibility for NRI NPS Account

The eligibility criteria for NRI NPS investment are given below. If you are NRI and complying with following conditions you can open NPS account.

  • Age: Between 18 and 60 years old.
  • Must comply with KYC norms.
  • PIOs and OCIs are not eligible.

The source of contribution should be from NRE account or NRO account. Minimum contribution at the time of opening account is Rs.500. Minimum amount per contribution is Rs.500. The minimum contribution of Rs.6000 is required per annum.

Key Features and Benefits of NRI NPS Account

  • The investment portfolio is well diversified across financial securities. Investor has flexibility to select fund ratio across investment options.
  • Investment can be made across asset class like Equity (E), Corporate Bonds (C) and /or Government Securities (G). This is to ensure that impact or return will be minimum in case market is down.
  • Two investment options are given to NRI –
    • Active Choice – NRI would decide asset classes in which the contributed funds are to be invested and their respective proportions.
    • Auto Choice – Default option under NPS, management of investment of funds is done automatically based on the age profile of the subscriber.
  • On successful registration PRAN (Permanent Retirement Account Number) is generated with unique 12 digit number.
  • NPS account can be operated online from anywhere.
  • There are two available sub-accounts under the NPS account scheme:
    • Tier – I accounts: Withdrawals are allowed for up to 25% of the borrowers own contribution. This is subject to the Withdrawal and Exit Regulations.
    • Tier – II accounts: This account is allowed as an add-on to Tier – I accounts, as a savings facility. Withdrawals are permitted as and when the investor wishes from Tier – II accounts.

How to register and apply for NPS for NRI?

Follow the steps given below to apply for NPS for NRI.

  • Download Subscriber registration form for NRI. This form is available under form section of NPS NSDL and PFRDA website
  • This form can also be downloaded from respective Bank websites.
  • NRI need to fill up the form and submit it to his/her NRI Bank branch in India for processing.
  • Bank Verifies and confirms NRO /NRE account particulars and forward the form to CRA.
  • Now you need to deposit cheque for initial contribution.
  • Your application will be digitized and PRAN will be generated at CRA.
  • An email or SMS will be sent to NRI applicant mentioning PRAN Number.
  • Subsequent transactions can be done online.

Exit and Withdrawal rules for NPS

The exit and withdrawal rules applicable NRI for NPS are given below.

  1. For exit from the scheme before the age of 60:
  • Compulsory Annuitisation – Minimum of 80%.
  • Lump Sum withdrawal – Maximum of 20%.
  • If the total corpus is less than 1 Lakh complete withdrawal.
  1. For exit upon attaining the age of 60:
  • Compulsory Annuitisation: Minimum of 40%.
  • Lump Sum withdrawal: Maximum of 60%.
  • If the corpus is less than 2 Lakh complete withdrawal.
  • Investors can stay invested in the scheme up to the age of 70 years.
  • Purchase of annuity can be deferred for a maximum period of 3 years at the time of exiting the scheme.
  1. Exit upon death of the subscriber:

The nominee will be instantly eligible to receive 100% of the NPS Pension wealth in a lump sum.

Over to you –

Do you recommend NRI to invest in NPS? Do share your views in the comment section.

- Advertisement -
- Advertisement -

Stay Connected


Must Read

Depression Video Center

If you’re struggling with depression, know this: you’re not alone. Learn from the experiences of those who have been there and came out the...
- Advertisement -

US announces travel restrictions over new Covid-19 variant

A healthcare worker administers the Johnson and Johnson vaccine to a woman outside a polling station at the Kopanong Hall in Soweto, on November...

Related News

Depression Video Center

If you’re struggling with depression, know this: you’re not alone. Learn from the experiences of those who have been there and came out the...

US announces travel restrictions over new Covid-19 variant

A healthcare worker administers the Johnson and Johnson vaccine to a woman outside a polling station at the Kopanong Hall in Soweto, on November...
- Advertisement -


  1. These are genuinely wonderful ideas in on the topic of blogging.

    You have touched some nice points here. Any way keep up wrinting.

  2. Howdy would you mind letting me know which webhost
    you’re working with? I’ve loaded your blog in 3
    completely different browsers and I must say this blog loads a lot
    faster then most. Can you suggest a good web hosting provider at a reasonable price?
    Thank you, I appreciate it!

  3. Hi mates, how is everything, and what you would like to say about this paragraph, in my view its really
    amazing designed for me.

  4. Excellent way of explaining, and pleasant post to obtain data about my presentation topic, which i am going to deliver in academy.

  5. I am extremely impressed with your writing skills and also with the layout on your weblog.

    Is this a paid theme or did you customize it yourself?
    Anyway keep up the excellent quality writing,
    it’s rare to see a nice blog like this one these days.

  6. I ddo not know whether it’s just mee or if perhaps
    everyone else encountering problems with your site.
    It appears as if some of the written text in your posts
    are running off the screen. Can somebody else please comment and let me know if thjs is happpening to them too?
    This may be a problem with my internet browser because I’ve had this happen before.


  7. [url=https://pharmacyvi.com/]www pharmacyonline[/url] [url=https://viagraibuy.com/]price viagra 50mg[/url] [url=https://cialisztabs.com/]can you buy cialis over the counter[/url] [url=https://ivermectinfast.com/]cost for ivermectin 3mg[/url] [url=https://buyventolinalbuterol.com/]combivent buy[/url] [url=https://viagranmed.com/]over the counter female viagra[/url] [url=https://upcialis.com/]cheap tadalafil tablets[/url] [url=https://brandivermectin.com/]ivermectin cost uk[/url] [url=https://sildenafilsuper.com/]sildenafil canadian online pharmacy[/url] [url=https://viagradex.com/]viagra pill[/url]

  8. That is really interesting, You are a very skilled blogger. I have joined your rss feed and sit up for seeking more of your wonderful post. Additionally, I have shared your web site in my social networks!

  9. Very efficiently written story. It will be valuable to anybody who usess it, as well as myself. Keep doing what you are doing – can’r wait to read more posts.

  10. I simply could not go away your website before suggesting that I really loved the standard info a person provide to your visitors? Is gonna be back frequently in order to investigate cross-check new posts.

  11. Dead indited subject material, appreciate it for entropy. “The bravest thing you can do when you are not brave is to profess courage and act accordingly.” by Corra Harris.

  12. Great website. A lot of helpful information here. I’m sending it to some friends ans additionally sharing in delicious. And obviously, thank you to your sweat!

  13. Wow! Thank you! I continually needed to write on my blog something like that. Can I implement a fragment of your post to my website?

  14. It’s awesome to pay a visit this web site and
    reading the views of all mates on the topic of this article, while I am also keen of getting experience.

  15. I just couldn’t depart your site prior to suggesting that I actually enjoyed the usual info a person supply to your guests? Is gonna be back continuously in order to investigate cross-check new posts.

  16. 148617 751263This is great content material. Youve loaded this with useful, informative content material that any reader can realize. I enjoy reading articles that are so really well-written. 143330

  17. Ill right away grab your rss feed as I can not find your e-mail subscription link or newsletter service. Do you’ve any? Please let me know so that I could subscribe. Thanks.

  18. You possess a wonderful skill. Your blogging competencies are undoubtedly superb. Gratitudes for submitting material online and educating your subscribers.

  19. I’m really enjoying the design and layout of your site. It’s a very easy on the eyes which makes it much more pleasant for me to come here and visit more often. Did you hire out a designer to create your theme? Superb work!

  20. We’re a group of volunteers and opening a new scheme in our community. Your web site provided us with valuable info to work on. You have done an impressive job and our entire community will be thankful to you.

  21. Thanks a bunch for sharing this with all of us you actually know what you are talking about! Bookmarked. Please also visit my site =). We could have a link exchange contract between us!

  22. Wow that was odd. I just wrote an extremely long comment but after I clicked submit my comment didn’t appear. Grrrr… well I’m not writing all that over again. Anyhow, just wanted to say superb blog!

  23. Your blog has fascinating content. I believe you must compose even more and also you will get even more followers. Maintain composing.

  24. Hey there! I know this is kind of off topic but I was wondering if you knew where I could get a captcha plugin for my comment form? I’m using the same blog platform as yours and I’m having problems finding one? Thanks a lot!

  25. Pretty section of content. I just stumbled upon your weblog and in accession capital to assert that I acquire in fact enjoyed account your blog posts. Anyway I will be subscribing to your augment and even I achievement you access consistently fast.

  26. My brother recommended I might like this website. He was totally right. This post truly made my day. You can not imagine simply how much time I had spent for this information! Thanks!

  27. I’m still learning from you, but I’m making my way to the top as well. I absolutely love reading all that is posted on your website.Keep the stories coming. I liked it!

  28. Hey there! I know this is somewhat off topic but I was wondering which blog platform are you using for this site? I’m getting fed up of WordPress because I’ve had issues with hackers and I’m looking at alternatives for another platform. I would be awesome if you could point me in the direction of a good platform.

  29. F*ckin tremendous things here. Im very glad to see your post. Thanks a lot and i am looking forward to contact you. Will you please drop me a e-mail?

  30. I’ll right away clutch your rss as I can not in finding your e-mail
    subscription hyperlink or e-newsletter service. Do you’ve
    any? Kindly allow me understand so that I may subscribe. Thanks.

  31. I always used to study piece of writing in news papers but now as I am a user of web
    thus from now I am using net for articles, thanks to


Please enter your comment!
Please enter your name here