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How NRIs Can Open NPS Account Online?

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The National Pension System (NPS) is a fixed contribution pension system spawned by the Indian government under the administration of the Pension Fund Regulatory and Development Authority (PFRDA). If a Non-Resident Indian (NRI) have a PAN card or Aadhaar Card and a bank account, he or she can open a National Pension System (NPS) account online. An NRI between the age group of 18 and 60 who fulfils the Know Your Customer (KYC) standards can establish a 'Tier I' or 'Tier II account respectively. An amount of Rs 500 as an initial contribution must be made through the specified bank following which a unique Permanent Retirement Account Number (PRAN) will be allotted to him or her. Now by knowing all these basic details, let's discuss in brief how NRIs can open an NPS account online.

 

Pre-requisites

Pre-requisites

  • Age limit between 18 -60 years
  • Aadhaar or PAN number
  • Mobile number registered with Aadhaar
  • The bank account must have been enabled with an internet banking service.
  • Opening Tier II accounts under eNPS for NRIs is not allowed.
  • Only an individual can open an NPS account
  • The power of attorney (POA) facility is not available.
Steps to open NPS account for NRIs using Aadhaar Card
 

Steps to open NPS account for NRIs using Aadhaar Card

  • Visit PFRDA/ NPS Trust website and select "eNPS"
  • Click on "Registration" and select the "New Registration" option to initiate the registration process.
  • Now choose ‘Non-Resident Indian (NRI)' and select type of account "Repatriable" or "Nonrepatriable".
  • Now select the alternative for registering with as "Aadhaar".
  • Now enter your Passport number and Aadhaar Number and click on Generate OTP.
  • Click Continue after entering the OTP received on the Aadhaar-registered mobile number.
  • For Repatriable eNPS Account: For bank authentication, choose a bank from the list of empanelled banks and enter your NRE/ NRO account specifics.
  • For Non-Repatriable eNPS account: Fill out your bank account details and submit NRE/ NRO account details on a self-declaration basis.
  • Demographic details and a photograph will be retrieved from the Aadhaar database and uploaded into an online form. Fill in other required details in different sections.
  • Under the ‘Personal Details' section, enter your name, father's/mother's name, Mobile Number and e-mail ID. Aadhaar will be accepted as proof of identity automatically. Specify your date of birth and choose a proof from the drop-down menu.
  • Now click on ‘Generate Acknowledgement No' and you can either continue or use this Acknowledgement No to enter the details in a different tab later.
  • Under the "Contact Details" section, the address will be retrieved from the Aadhaar database automatically and displayed which you can not edit if required. Once it is done, click on the "Save & Proceed" button to continue.
  • Under the "Bank & Other Details" section, select your occupation and relevant details from the available option. Now enter bank account details correctly. You must choose one of the empanelled banks for authentication and submit details of your NRE/ NRO account for a repatriable eNPS NRI account (list of empanelled banks available on www.enps.nsdl.com). Details of any NRE/NRO account of any bank may be entered on a self-declaration basis in the event of a non-repatriable eNPS NRI Account. Once you are done, click on the "Save & Proceed" button to continue.
  • Under the "Scheme & Nomination Details" section, select the ‘Pension Fund Manger' and the investment choice (Active or Auto). You need to state the percentage of allocation in different asset classes if you are choosing Active Choice. You have the option of nominating up to three individuals and deciding for their percentage share. Once done, click on the "Save & Proceed" button to continue.
  • Under the "Photo & Signature Details" section, it is allowed to submit any other image in place of the Aadhaar database image. Scanned ‘Signature' and ‘Photograph' should be uploaded (must be in .jpg format and the size of the image should be between 4kb and 12 kb). Once done, confirm all the details and click on "Save & Proceed" button to continue.
  • Under the "Payment Details" section, make an initial contribution of Rs 500 and you will be redirected to the payment gateway after providing the payment details.
  • After you make a successful payment, you will be assigned a Permanent Retirement Account Number (PRAN). The subsequent contributions to a Repatriable eNPS NRI account must be made using the account that was specified during the registration procedure.
  • Initial and future contributions to a non-repatriable eNPS NRI account can be made using any mode, including net banking, credit card, and debit card.
Steps to open NPS account for NRIs using PAN Card

Steps to open NPS account for NRIs using PAN Card

Any Non-Resident Indian citizen between the ages of 18 and 60 who has a PAN card and a bank account (with one of the empanelled banks) can enrol in the National Pension System online. You should reiterate that Tier II accounts would not be permitted for NRIs under eNPS.

  • Visit PFRDA/ NPS Trust website and select "eNPS"
  • Click on "Registration" and select the "New Registration" option to initiate the registration process.
  • Now choose ‘Non-Resident Indian (NRI)' and select type of account "Repatriable" or "Nonrepatriable".
  • Now select the alternative for registering with as "PAN"
  • Now enter your Passport number and PAN Number.
  • For Repatriable eNPS A/c OR NonRepatriable eNPS A/c: For bank authentication, choose a bank from the list of empanelled banks and enter your NRE/ NRO account specifics.
  • Now enter your personal details, contact details, bank and other details, scheme and nomination details, photo & signature details and payment details as stated in the above procedure.
  • After you make a successful payment, you will be assigned a Permanent Retirement Account Number (PRAN). The subsequent contributions can be made using any method, including net banking, credit card, and debit card.
  • After finalizing the registration procedure, print the system-generated form, paste your photo, sign and submit it to the CRA within 90 days, otherwise, your account will be frozen.
Exit & Withdrawal Rules for NRIs Under NPS

Exit & Withdrawal Rules for NRIs Under NPS

After reaching the age of 60, annuitisation of at least 40% and a lump sum withdrawal of up to 60% are permitted. Complete withdrawal is permitted if the corpus is less than Rs. 2.00 Lac. Subscribers can invest in the NPS until they reach the age of 70. Fresh contributions are allowed throughout this time of deferment; eligible lump sum withdrawals can be deferred until the age of 70. The purchase of an annuity can also be deferred for a maximum of three years at the time of exit. If you leave the NPS before you reach the age of 60, you must choose an annuity of at least 80%; you can take a lump-sum withdrawal of up to 20% of your initial investment; and if your corpus is less than Rs.1.00 Lac, you can withdraw your entire corpus. A nominee can receive 100% of the NPS pension wealth in a lump amount upon the subscriber's death.

Partial Withdrawal Rules for NRIs Under NPS

Partial Withdrawal Rules for NRIs Under NPS

A partial withdrawal of the subscriber's accumulated pension wealth is permitted for the purposes of his or her children's higher education, marriage, the acquisition or construction of a residential house or flat, and the treatment of specific illnesses. A partial withdrawal of up to 25% of the NRI's contributions is permitted. To make a partial withdrawal, an NRI must have been a member of the National Pension System for at least ten years. A maximum of three (three) partial withdrawals is permitted during the tenure, with a minimum of five (five) years between consecutive withdrawals.

Pension Funds for NRIs

Pension Funds for NRIs

Any one of the following pension funds can be chosen by NRIs:

SBI Pension Funds Pvt. Limited
LIC Pension Fund Limited
UTI Retirement Solutions Limited
ICICI Prudential Pension Funds Management Company Limited
Kotak Mahindra Pension Fund Limited
Reliance Capital Pension Fund Limited
HDFC Pension Fund Limited
Birla Sun Life Insurance company limited

Tax benefits for NRIs under NPS

Tax benefits for NRIs under NPS

NRI contributions are tax-deductible up to 10% of gross income under section 80 CCD (1) of the Income Tax Act, subject to a limit of Rs. 1.50 lacs under section 80 CCE of the Income Tax Act. Pensions and annuities for NRIs should be paid in local currency, i.e. INR. There are no restrictions on NRIs repatriating their pensions, whether annuity or lump-sum, under the NPS.

List of authorized banks

Sr No.Bank
1 Allahabad Bank
2 Andhra Bank
3 Bank of India
4 Bank of Maharashtra
5 Corporation Bank
6 Dena Bank
7 IDBI Bank
8 Indian Bank
9 Oriental Bank of Commerce
10 State Bank of Bikaner & Jaipur
11 State Bank of Hyderabad
12 State Bank of India
13 State Bank of Patiala
14 State Bank of Travancore
15 Syndicate Bank
16 Tamilnad Mercantile Bank Ltd
17 Karur Vysya Bank
18 Lakshmi Vilas Bank Limited
19 South Indian Bank
20 UCO Bank
21 United Bank of India
22 Vijaya Bank

Note: For any queries, NRI subscriber of NPS can call on 1800-110-708 or they can visit www.npstrust.org.in or www.enps.nsdl.co.in for more details.

Read more about: nps national pension system nri
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