Accounts can be opened on repatriable and non-repatriable basis.
By Sreekanth A. Nair
In a move to attract investment from Non-Resident Indian (NRI) community, India’s finance ministry has extended the service of National Pension Savings (NPS) to NRIs.
“NRIs can now open NPS Accounts online if they have Aadhaar card or PAN card,” the finance ministry said in a statement on Friday. “Through eNPS, a subscriber will be able to open an NPS account from the comfort of his/her home. All he/she will need is an internet connection and an Aadhaar/ PAN card.”
So far, NRIs had to go to banks for opening National Pension Savings account. With the new change, they will now be able to open accounts from their home if they have an internet connection and either card or PAN card.
Accounts can be opened on repatriable and on non-repatriable basis. On a repatriable basis, an NRI will have to remit the amount through his/her NRE/FCNR/NRO account, said the ministry.
The ministry statement said: “for non-repatriable scheme, NRIs will be able to join NPS through their NRE/FCNR/NRO accounts at the time of maturity or during partial withdrawal, the NPS funds would be deposited only in their NRO accounts.”
With NPS accounts in India, NRIs can ensure their income security at minimum cost and more flexibility. The investment in the account is administered by Pension Fund Regulatory and Development Authority (PFRDA), a regulatory body set up by the central government to ensure the safety of investment and protect the interests of the participants.
The government is targeting 29 million NRIs living in over 200 countries. Most of the Indians go abroad in search of employment and return to India after having served there for some years. The new change in the rule is expected to create fund flows from Indian Diaspora overseas.