INCOME TAX7 Sept 2026
NPS for NRIs: What happens to your account when you move abroad? PFRDA explains
When you move abroad, you need not close your National Pension System (NPS). PFRDA, the pension regulator, confirms non-resident Indians and Overseas Citizens of India can keep their Tier I account by using an NRE or NRO bank account. However, Tier II accounts cannot be activated by NRIs or OCIs. So plan accordingly.
Key Statutory Highlights
- NRIs and OCIs can keep a Tier I NPS account after moving abroad, instead of being forced to close it.
- An NRE or NRO bank account must be provided as proof while subscribing to NPS.
- NRIs and OCIs cannot activate a Tier II NPS account.
Actionable Advice for Taxpayers / Founders:Before shifting abroad, set up an NRE or NRO account and confirm with your pension fund how Tier I contributions will continue. Remember, Tier II won't be available.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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