RBI allows NRIs to subscribe to National Pension System

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★ To enable Indians living abroad to access old age income security, Reserve Bank of India allowed non-resident Indians (NRIs) to subscribe to the National Pension System (NPS) governed by the Pension Fund Regulatory and Development Authority.

★ It has now been decided, in consultation with the Government, to enable National Pension System (NPS) as an investment option for NRIs under FEMA, 1999.

★ Now NRIs may subscribe to the NPS provided such subscriptions are made through normal banking channels and the person is eligible to invest as per the provisions of the PFRDA Act.

About National Pension System (NPS) :-

★ NPS was launched on January, 1 2004 with the objective of providing retirement income to all the citizens. NPS aims to institute pension reforms and to inculcate the habit of saving for retirement amongst the citizens.

★ Initially, NPS was introduced for the new Government recruits (except armed forces). With effect from May 1, 2009, NPS has been provided for all citizens of the country, including the unorganised sector workers, on voluntary basis.