The Reserve Bank of India(RBI) on Thursday allowed NRIs to subscribe for National Pension System (NPS) as an investment option under FEMA, 1999.
The New Pension Scheme or the NPS is governed by the Insurance and Regulatory development of India or IRDA.
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 RBI said.
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, added further.