RESERVE BANK OF INDIA HAS PERMITTED NON-RESIDENT INDIANS (NRIs) TO SUBSCRIBE TO THE NATIONAL PENSION SYSTEM GOVERNED AND ADMINISTERED BY THE PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY (PFRDA).
As per extant FEMA provisions NRIs are not allowed to subscribe to National Pension Scheme (NPS). However, with a view to enable NRI’s access to old age income security, RBI , in consultation with the Government of India has enabled National Pension System (NPS) as an investment option for NRIs under FEMA 1999, vide their A P (DIR Series) Circular No. 24 dated 29.10.2015. Accordingly, 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 subscription amounts shall be paid by the NRIs either by inward remittance through normal banking channels or out of funds held in their NRE/FCNR/NRO account. There shall be no restriction on repatriation of the annuity/ accumulated savings.
Banks are advised to take note of the above and bring the same to the notice of their constituents and customers concerned.
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