How to Exit NPS and Withdraw Corpus After Renouncing Indian Citizenship? Step-By-Step Guide

Planning to settle abroad brings multiple challenges, including financial and regulatory changes. For Indians who choose to renounce their citizenship, managing and closing existing financial investments is an important step. One such key aspect is exiting the National Pension System (NPS) and withdrawing the accumulated corpus.

The process of exiting NPS and withdrawing the amount can be complex for those who have renounced their citizenship and do not have an Overseas Citizen of India (OCI) card.
"Subscribers who validly renounce their Indian citizenship and do not hold an OCI Card, are required to immediately inform the National Pension System (NPS Trust) of the change in status along with proof thereof," explains Sarvesh Tiwari, Chairman of the Public Relations Society, Delhi (PRSD).

Any Indian citizen aged 18 to 70 can voluntarily open an individual account under NPS. Even a Non-Resident Indian (NRI) and Overseas Citizen of India (OCI) can also open an NPS account if they meet the eligibility criteria. In cases where an existing NPS subscriber is giving up his/her/their citizenship and does not have an OCI card, here's a detailed guide on NPS account closure and withdrawal of corpus.

How To Close an NPS Account And Settle Corpus?

For those who have renounced their citizenship and do not have an OCI card, the first step is to inform the National Pension System (NPS Trust) of the change in status along with proof thereof.

The second step is to close the 12-digit Permanent Retirement Account Number (PRAN)/ NPS Account held by the subscriber, explained Sarvesh Tiwari. He also added that the next step would be to transfer the entire accumulated pension wealth to a Non-Resident Ordinary (NRO) account only.

Step-By-Step Guide To Close NPS Account, Withdraw Pension Fund

-Submit an application for closure of the NPS account along with the following and additional documents, like a valid certificate of Renunciation of Indian Citizenship/ Surrender certificate / cancelled Indian Passport, issued by a competent authority.

-They are also required to submit an undertaking stating that the subscriber has renounced Indian citizenship and does not hold an OCI card.

- The total accumulated pension wealth of the subscriber in the PRAN will be transferred only in to the NRO account of the subscriber, in accordance with FEMA guidelines issued by the Reserve Bank of India.

-The NPS Trust in co-ordination with CRAs shall process the requests received from such subscribers.

About PFRDA

PFRDA is the regulator for the National Pension System and oversees operations of NPS Trust. NPS is meant as a long-term retirement savings option, so people contribute during working years and draw support after retirement.

Future plans to surrender Indian citizenship should therefore not stop any eligible person from opening an NPS account. The regulations already provide a clear route for closure, documentation and transfer of the full accumulated pension wealth into an NRO account, if citizenship is renounced and no OCI card is held.