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What will happen to my NPS if I become an NRI?

Moving abroad and wondering if you can continue or withdraw your NPS account? Read on to get the answer.

NPS account for NRI: What will happen to my NPS if I become an NRI?

What will happen to my NPS corpus if I leave the country and become an NRI? Will I get the option to withdraw 100 per cent corpus without annuity option as I may not need annuity as an NRI in a foreign country? - Ashwajeet Singh

All rules regarding National Pension System (NPS) remain the same for Non-Resident Indians (NRIs) as they are for resident Indians.

This means you have to mandatorily buy an annuity plan with at least 40 per cent of the NPS corpus at the time of retirement.

Only if the corpus is less than Rs 5 lakh can you choose to withdraw your entire NPS amount.

What if you decide to close your NPS prematurely?

  • You can only close your NPS account prematurely after 10 years of opening the account.
  • And if you do, you have to utilise 80 per cent of the corpus for buying an annuity plan.
  • Here again, you can be exempted if your total corpus does not exceed Rs 5 lakh. In such cases, you don't have to buy an annuity plan.

Things to keep in mind when you become an NRI

  • You must get your regular savings bank account converted into an NRE or an NRO account. That is mandatory.
  • Once your bank account is converted, you need to get your status changed in the NPS records from a resident Indian to an NRI. For this purpose, one primarily needs to fill-up the registration form for NRIs. It will also require proof that you have got your bank account converted along with a copy of your passport.

How to convert your NPS account

  • If you had opened your NPS account directly - without the help of any intermediary - you can download the form from the website of your Central Record Keeping Agency (CRA) and seek the help of their customer care on where to submit it. Most likely, it can be done online. Protean (Formerly NSDL) subscribers can download the form from here.
  • Alternatively, if you had opened your NPS account through a bank or any other intermediary, contact them and they will help you with all the paperwork.

Suggested read: What to do with your investments when you become an NRI?

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