NPS : These National Pension System (NPS) accounts will be closed soon. The government has changed the rules of NPS. Now if your NPS account falls in this special category, it will be closed soon.
There has been a big change for those customers investing in the pension scheme under the National Pension System (NPS) who have given up Indian citizenship. Those who no longer have an Overseas Citizen of India (OCI) card. The Pension Fund Regulatory and Development Authority (PFRDA) has issued new guidelines in this regard by issuing a circular on 21 April 2025.
What is said in the circular?
According to the circular, such subscribers who have given up Indian citizenship on papers and who do not have an OCI card, will have to immediately inform the NPS Trust about the change in their citizenship. Along with this, proof of this will also have to be given. After this, the NPS account of the concerned person will be closed and the entire pension amount deposited in it will be transferred to his NRO (Non-Resident Ordinary) account.
What is giving up Indian citizenship?
Renunciation of Indian citizenship means voluntarily giving up your Indian citizenship. This usually happens when an Indian citizen acquires citizenship of another country. Dual citizenship is not allowed in India, so this is a legal process.
Who can open an NPS account?
Any Indian citizen between the ages of 18 and 70 can open an NPS account. Apart from this, NRI and OCI cardholders can also open an account under certain conditions.
What should NPS subscribers do now?
If a subscriber has renounced Indian citizenship and does not have an OCI card, he needs to immediately inform the NPS Trust and submit the required documents.
How to close NPS account?
To close the account, the subscriber has to submit a signed affidavit confirming renunciation of citizenship, a copy of the renunciation certificate, surrender certificate or cancelled Indian passport. After verification, the NPS Trust and the concerned Record Keeping Agencies (CRAs) will complete the account closure process and the amount will be transferred to the NRO account.
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