How Can NRIs Invest in the National Pension Scheme? (Step-by-Step Guide)
The National Pension System (NPS) is a popular pension scheme in India designed to provide retirement benefits to Indian citizens. While initially launched for government employees in 2004, it was extended to all Indian citizens in 2009. But what about Non-Resident Indians (NRIs)? Can they invest in the NPS? The answer is yes, and this article will guide NRIs through the step-by-step process of investing in the NPS.
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How Can NRIs Invest in the National Pension Scheme? (Step-by-Step Guide)
Step 1: Check Eligibility Before diving into the NPS investment process, it’s essential for NRIs to ensure they meet the eligibility criteria. NRIs aged between 18 and 70 years are eligible to invest in the NPS.
Step 2: Complete KYC Formalities Know Your Customer (KYC) verification is a crucial step for NRI investors. To get started, NRIs need to provide the following documents:
- Aadhaar number linked to a registered mobile number
- Copy of their signature
- Non-resident ordinary account details
- PAN (Permanent Account Number)
- Cancelled cheque
- Copy of the Passport
Step 3: Obtain PRAN Once KYC formalities are completed, NRI investors will be assigned a Permanent Retirement Account Number (PRAN). This unique PRAN is necessary for making NPS contributions.
Step 4: Registration via PFRDA Portal NRIs can register for NPS via the Pension Fund Regulatory and Development Authority (PFRDA) portal. Here’s how:
- Choose the “eNPS” option.
- Select the “NRI” option.
Step 5: Choose Fund Manager and Mode of Investment NRIs have the flexibility to choose their preferred fund manager and the mode of investment, which can be either active or auto. This choice allows investors to have control over their NPS funds.
Step 6: Upload Required Documents Upload scanned copies of the following documents on the portal:
- Aadhaar card
- PAN card
- Passport
- Digital signature
- Photograph
- Cancelled cheque
Step 7: Make Minimum Payment NRIs are required to make a minimum payment of Rs 500 through their bank’s net banking facility. The good news is that there is no upper limit for NPS investments by NRIs, allowing them to invest according to their financial goals.
Step 8: Authentication Within 90 days of receiving the PRAN number, NRIs need to authenticate their NPS application. They can choose between two methods:
- E-Sign: Authenticate using the OTP sent to their registered mobile number.
- Physical Authentication: Print the application, sign it, and courier it to the bank responsible for opening the NPS account.
Conclusion:
Investing in the National Pension Scheme (NPS) as an NRI is a straightforward process with several key steps. By meeting the eligibility criteria, completing KYC formalities, and following the step-by-step guide outlined in this article, NRIs can secure their financial future with NPS and enjoy the benefits of this popular retirement savings scheme.
