NPS account for non-resident Indians: How NRIs can open eNPS account
National Pension System (NPS) has been launched by the government of India to provide old age security to citizens of the country. Since this pension cum investment scheme brings an attractive long term saving avenue, you can plan your retirement through a safe and regulated market-based return. The NPS has of late become very popular after the government allowed an additional tax benefit of up to Rs 50,000 under Section 80CCD(IB) over and above the Section 80C benefit. In comparison to other popular retirement products like Public Provident Fund (PPF), the NPS has emerged as a more popular investment option.
1. An NRI should first visit PFRDA NPS trust website - https://enps.nsdl.com/eNPS/NationalPensionSystem.html - and click on 'Registration' tab to begin the process of registration. Image source: Pixabay
2. He/she need to choose Non-Resident Indian option and choose the type of account—repatriable (NRE) or non-repatriable (NRO), and then enter details of PAN, passport number and bank account. Further, select the country of residence from the dropdown list and then submit other details to see NPS registration form which should be filled up with all the required personal details. Image source: Pixabay
3. Choose the pension fund manager from the drop-down list and investment mode- Active or Auto, and if you have selected Active mode then you need to specify the percentage allocation in the different asset class. However, if you have selected Auto mode, your allocation will be done automatically based on a pre-decided strategy, depending on your age. Image source: Pixabay
4. Now, you should enter nominee details which can be up to three nominees, and then upload scanned signature and photograph in jpg format. The size of the image should be between 4 and 12 kb. Image source: Pixabay
5. You should now make an initial contribution of at least Rs 500 through the selected bank to generate a Permanent Retirement Account Number (PRAN). Image source: Pixabay
6. You should take the print of system-generated filled-in form, paste your photograph, put your signature and must send the hard copy to the central record keeping agency of NPS within 90 days. Image source: Reuters