An NPS account can be opened by any Indian citizen between the ages of 18 and 70. As long as they fulfill the prerequisites established by the PFRDA, Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) are also eligible to open an NPS account.
For National Pension System (NPS) members who relinquish their Indian citizenship, the Pension Fund Regulatory and Development Authority (PFRDA) has released new requirements.
These instructions make it clearer how those who have lost their Indian citizenship and haven’t applied for an Overseas Citizen of India (OCI) card can close their NPS accounts.
The act of voluntarily renouncing Indian citizenship is a legal procedure that typically occurs after a person obtains citizenship in another nation. Since dual citizenship is prohibited in India, obtaining citizenship in another country requires this procedure.
“In respect of such subscribers who have validly renounced their Indian citizenship and do not hold an OCI card, the said subscriber is required to forthwith intimate National Pension System Trust (NPS Trust) of the change in status along with proof thereof and PRAN/NPS account held by the subscriber shall be closed and the entire accumulated pension wealth may be transferred to Non-Resident Ordinary (NRO) account only,” stated PFRDA in a circular dated April 21, 2025.
Who can open an NPS Account in India?
An NPS account can be opened by any Indian citizen between the ages of 18 and 70. As long as they fulfill the prerequisites established by the PFRDA, Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) are also eligible to open an NPS account.
A subscriber must take certain actions to terminate their NPS account if they renounce their Indian citizenship.
Actions required to be done by the individual: –
In order to close their account, individuals must first submit an undertaking attesting to the fact that they no longer hold an OCI card and have renounced their Indian citizenship.
Additionally, they must present documentation of their renunciation, such as a surrender certificate, renunciation certificate, or a cancelled Indian passport.
“The subscriber shall submit an application for closure of his/her NPS account along with the following additional documents to NPS Trust: An Undertaking stating that s/he has renounced his/her Indian citizenship and does not hold an OCI card. Valid certificate of Renunciation of India Citizenship/ Surrender Certificate/ Cancelled Indian Passport, issued by competent authority,” mentioned the circular.
The account will be terminated and the pension funds will be moved to the subscriber’s Non-Resident Ordinary (NRO) account when the NPS Trust and the Central Recordkeeping Agencies (CRAs) have confirmed these documents. The guidelines established by the Foreign Exchange Management Act (FEMA) will be adhered to in this transfer.
An NPS subscriber should notify the NPS Trust right away and submit the necessary paperwork if they give up their Indian citizenship and fail to receive an OCI card. This will guarantee a seamless closure of their NPS account and the appropriate transfer of their pension.
These modifications are intended to make it easier for people to relinquish their Indian citizenship and guarantee that they may still properly manage their NPS assets after relocating outside.
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