NPS for NRIs and OCI cardholders: eligibility and exit
NRI Dash Research Team · Last reviewed: 2026-06-28
NPS for NRIs is a reference to the National Pension System, India's government-regulated long-term retirement savings scheme open to NRIs between the ages of 18 and 60. Contributions can be made in Indian rupees from NRE or NRO accounts, and the funds are invested across equity, corporate bonds, and government securities depending on the selected fund manager and asset allocation. Historical NPS returns have ranged from 9% to 12% per annum over the long term, though returns are not guaranteed. Contributions up to Rs 1.5 lakh per year are deductible under Section 80C of the Income Tax Act, with an additional Rs 50,000 deduction available under Section 80CCD(1B). At retirement, 60% of the accumulated corpus can be withdrawn as a tax-free lump sum, while the remaining 40% must be invested in an annuity plan. Upon maturity, if the NRI has become a resident, annuity income is taxed as regular income in India under applicable slab rates.
Pension access is rule-based
Check citizenship or OCI status, age, KYC and bank support before opening. Then review exit and annuity rules rather than treating NPS like a normal mutual fund.
Key points
- Eligible individuals — PFRDA lists resident and non-resident Indian citizens and OCI cardholders.
- KYC required — The subscriber must complete prescribed identity and onboarding checks.
- Exit restrictions — Withdrawal and annuity rules apply to the pension account.
Questions before enrolment
Confirm the current age range, accepted payment route, Point of Presence or eNPS process and nomination details. Review asset allocation and pension-fund choices against the long-term goal.
Tax benefits and withdrawal taxation can differ between India and your residence country.
Keep the account current
Update address and residential status.
Maintain nomination and contact details.
Review exit rules before permanently leaving or returning to India.
Frequently asked questions
Can an OCI cardholder open NPS?
PFRDA's All Citizen Model lists eligible OCI cardholders, subject to age, KYC and other conditions.
Can an NRI open NPS for a family member?
NPS is an individual account and cannot simply be opened on behalf of another adult.
Is NPS the same as a mutual fund?
No. It is a regulated retirement account with specific contribution, withdrawal and annuity rules.