National Pension System opened as investment option for NRIs

Mumbai: In a move designed to help NRI access old age income security, the Reserve Bank of India (RBI) on Monday enabled the National Pension System (NPS) as an investment option for them.

NRIs can subscribe to the NPS, governed and administered by the Pension Fund Regulatory and Development Authority (PFRDA), provided such subscriptions are made through normal banking channels and the person is eligible to invest as per the provisions of the PFRDA Act, said the RBI.

"The subscription amounts shall be paid by the NRIs either by inward remittance through normal banking channels or out of funds held in their NRE/FCNR/NRO account," the RBI notification said.

There will be no restriction on the repatriation of the annuity or accumulated savings, India's central bank added.