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The Pension Fund Regulatory and Development Authority (PFRDA) has recently issued a circular saying that individuals who give up Indian citizenship and do not hold an Overseas Citizen of India (OCI) card will face closure of their NPS accounts and funds will be transferred to Non-Resident Ordinary (NRO) account.
As per PFRDA, any Indian citizen aged between 18 and 70 years can open an NPS account, which also includes Non-Resident Indians (NRIs) and OCI cardholders, subject to certain conditions.
However, if a subscriber renounces Indian citizenship and does not have an OCI card, their NPS account must be closed. The subscriber must inform the NPS Trust immediately, along with proof of renunciation and details of their account.
PFRDA said that these subscribers will have to do two tasks:
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An undertaking confirming renunciation of Indian citizenship and absence of an OCI card.
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Proof such as the renunciation certificate, surrender certificate, or cancelled Indian passport.
After this is verified, the full pension amount will be transferred only to the subscriber’s NRO account, clarified PFRDA.