RBI has allowed NRIs to invest in National Pension System (NPS).
The banking regulator, in consultation with the government, has amended Foreign Exchange Management Act (FEMA) by including NPS as an investment option for NRIs under FEMA.
In a notification, RBI said, “With a view to enabling NRIs access to old age income security, it has now been decided, in consultation with the government of India, to enable NPS as an investment option for NRIs under FEMA, 1999. Accordingly, the NRIs may subscribe to the NPS governed and administered by the PFRDA, provided such subscriptions are made through normal banking channels and the person is eligible to invest as the PFRDA act.”
Also, RBI has clarified that there will be no restriction on repatriation of the annuity or accumulated savings.
Earlier in August, PFRDA had clarified that NRIs can subscribe to NPS. The pension fund regulator was awaiting RBI’s go ahead.
