Non-Resident Indians (NRIs) can now join and subscribe to the National Pension System (NPS) online through eNPS, the Pension Fund Regulatory and Development Authority has said in a statement.
NRIs can now open NPS accounts online if they have an Aadhaar card or PAN (Permanent Account Number) card. Until now, NRIs could open NPS accounts only through paper applications by approaching bank offices.
“Through eNPS, a subscriber will be able to open an NPS account from the comfort of his home. All he will need is an Internet connection and an Aadhaar/PAN card,” the statement noted.
NRIs will be able to open NPS accounts both 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. For the non-repatriable scheme, NRIs will be able to join NPS through their NRE/FCNR/NRO accounts and, at the time of maturity or during partial withdrawal, the NPS funds would be deposited only in their NRO accounts,” the
statement explained.
Both repatriable and non-repatriable schemes will “greatly appeal to NRIs who intend to return to India after their employment abroad in view of their attractive returns, low cost, flexibility and their being regulated by the PFRDA, a regulator established by the central government”, the authority has said.
India has the second-largest diaspora in the world, with around 29mn people living in over 200 countries. Of these, 25% live in the Gulf countries, according to the statement. “Most Indians going to the Gulf and some other countries go for employment and return to India after having worked abroad for a certain period. NPS can provide a long-term solution to their old-age income security. NPS has been available to NRIs for some time through bank offices and now, to further ease the process of joining, eNPS is being extended to non-resident Indian subscribers.”