National Pension Scheme (NPS) is a government scheme which has been designed for retirement. Any Indian can invest in this scheme. But if NRIs want to join this scheme, can they do so? Know what are the rules regarding this.
National Pension Scheme (NPS) is a government scheme which has been designed for retirement. Earlier this scheme was started only for government employees, later it was also opened for all Indian citizens. Through this scheme, any investor can arrange pension for himself along with retirement fund. But if an NRI wants to invest in this scheme, can he do so? Know what are the rules regarding this.
What are the rules regarding NRI
According to the rule, like any other Indian citizen, NRIs can also take advantage of the scheme by investing in National Pension Scheme i.e. NPS. But the condition for them is that they can only open Tier-1 account, cannot contribute in Tier-2. To open an NPS account, NRIs will also have to follow the existing KYC norms.
How can NRIs invest
To invest in NPS, first go to the official website eNPS. Select National Pension System (NPS) and go to the option of Register for NPS. Scroll down to the NRI option and click on Register Now. After this, provide information about your date of birth, PAN number, mobile number and email ID etc. and by following the steps mentioned below and filling the required information, they can get their registration done. Apart from this, they can also open the account offline. For this, they will have to go to the authorized branch of any Point of Presence (POP) and fill the form and submit all the necessary documents.
Also Read-Â PAN Card Decoding: All your information is hidden in PAN card, do you know?
While opening the account, documents like Aadhar card, PAN card, canceled cheque and photocopy of passport etc. are asked from the NRI. After this, investors have to open their account by paying Rs 500. Once the person’s PRAN (Permanent Retirement Account Number) number is issued, it has to be verified within 90 days. For this, they receive an email through which they can verify their account. After the account is verified, one can start investing in the NRI scheme.
There are two types of NPS accounts
Let us tell you that there are usually two types of accounts in NPS, Tier-1 and Tier-2. Tier 1 account can be opened by any person but Tier-2 account can be opened only if you have a Tier-1 account. However, NRIs are prohibited from contributing to NPS Tier-2 account. According to the rules, you can take 60% of the total amount invested in NPS as a lump sum after turning 60, while at least 40% of the amount has to be used as annuity. You get pension from this annuity.
Related Articles:-
PAN Card Decoding: All your information is hidden in PAN card, do you know?
5 Best 7 Seater Cars Under 10 Lakh in India, Check Features & Other Details
Health insurance: Due to these 5 reasons your insurance claim gets rejected, know details
