The Pension Fund Regulatory and Improvement Authority (PFRDA) has lately introduced

New pointers for countrywide Pension Machine (NPS) subscribers who surrender their indian citizenship.

Those pointers make clear the system for ultimate NPS bills for those who no longer keep indian citizenship and have now not obtained an Overseas Citizen of india (OCI) card.

Renouncing indian citizenship is a legal process wherein a character voluntarily offers up their indian nationality, generally after obtaining citizenship of any other U.S.A. india does not now permit dual citizenship, so this method is required when a person desires to become a citizen of every other state.

"In appreciation of such subscribers who have validly renounced their indian citizenship and no longer maintain an OCI card, the said subscriber is required to forthwith intimate the countrywide pension machine belief (NPS accepts as true) of the trade-in status at the side of proof thereof, and the PRAN/NPS account held by means of the subscriber shall be closed, and the entire gathered pension wealth may be transferred to a non-resident regular (NRO) account most effectively," said PFRDA in a round dated april 21, 2025.

WHO CAN OPEN AN NPS ACCOUNT IN INDIA?

Any indian citizen between 18 and 70 years old can open an NPS account.

Moreover, Non-Resident indians (NRIs) and Overseas Residents of india (OCIs) also can open an NPS account, as long as they meet the necessary requirements set through the PFRDA.

If a subscriber renounces their indian citizenship, they want to observe a few steps to close their NPS account.

First off, they should practice for account closure by way of filing an undertaking confirming that they have given up their indian citizenship and do not own an OCI card.

They'll also need to provide proof of their renunciation, consisting of a renunciation certificate, a give-up certificate, or a cancelled indian passport.

"The subscriber shall put up a utility for closure of his/her NPS account along with the following extra files to NPS belief: A venture pointing out that s/he has renounced his/her indian citizenship and does now not maintain an OCI card. valid certificate of Renunciation of indian Citizenship/give-up certificates/cancelled indian passport, issued via equipped authority," noted the circular.

As soon as the NPS considers and the important recordkeeping corporations (CRAs) affirm those documents, the account could be closed, and the pension finances may be transferred to the subscriber's non-resident regular (NRO) account. This switch will observe the policies laid out underneath the Foreign Exchange Management Act (FEMA).

If an NPS subscriber renounces their indian citizenship and does not obtain an OCI card, they need to tell the NPS consider and offer the specified documentation. This could assist in ensuring their NPS account is closed easily and that their pension quantity is well transferred.

These modifications are intended to streamline the method for folks that give up their indian citizenship, ensuring they can control their NPS finances appropriately even after shifting overseas.