NPS for NRIs & OCIs: A Complete Guide

The National Pension System (NPS) is available to Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs), offering them a structured retirement savings option in India. Eligible NRIs and OCIs can open an NPS account if they are between 18 and 85 years old, hold a PAN, and have an NRE or NRO bank account.

What are the eligibility criteria for NRIs and OCIs?

To open an NPS account, NRIs and OCIs must meet specific eligibility criteria. They should be aged between 18 and 85 years at the time of registration. Additionally, they must possess a Permanent Account Number (PAN) and maintain an NRE or NRO bank account. The Permanent Retirement Account Number (PRAN) issued is unique and remains with the subscriber for life, regardless of their residency status.

Documents required to open an NPS account?

To successfully open an NPS account, NRIs and OCIs need to provide only a few documents as mentioned below. Having these documents ready simplifies the registeration and with Pensionbox, you can open your NRI/OCI NPS account in just 5 minutes.

1. PAN card
2. Passport
3. NRE or NRO account
4. A cancelled cheque
5. Scanned copies of their photograph and signature

How does NPS investment work?

NPS for NRI/OCI functions similarly to that for resident Indians. Subscribers can choose between the Auto choice, where the equity share decreases with age, the Active choice, where they can decide the allocation across asset classes, or invest in the New Multiple Scheme Framework with upto 100% equity investments. Contributions are made in rupees and invested in Indian markets.

This investment provides NRIs a rupee-denominated retirement option, which can be beneficial for those planning to return to India.

Tax implications for investing in NPS?

Investments in NPS are eligible for tax deductions under section 80CCD(1B) of the Income-tax Act, 2025, allowing an additional deduction of ₹50,000. However, NRI/OCIs should be aware that tax treatment may vary in their country of residence. It's advisable to consult a tax adviser to understand any implications fully.

Upon exit, up to 80% of the lump sum is tax-exempt under section 10(12A), while the annuity purchase is not taxed at exit. The pension received later is taxed as income.

How can you open an NPS account as an NRI or OCI?

Opening an NPS account with PensionBox takes about five minutes if your documents are ready. The whole process is 100% online.

1. Sign in. Enter your mobile number and verify the OTP sent to it.
2. Confirm your residency. Select NRI or OCI and declare your residential status.
3. Complete KYC. Enter your PAN and upload your passport.
4. Add your bank details. Enter your NRE or NRO account details, then upload a cancelled cheque.
5. Choose how your money is invested. Pick your pension fund manager and then Auto choice, Active choice, or a scheme under the Multiple Scheme Framework.
6. Add a nominee and make your first contribution. Your PRAN is issued once the contribution is successful, usually within a minute.

Open your NPS account today →

What if you already invest with Zerodha?

NPS on Zerodha's Coin platform is available to resident individuals only, so NRIs and OCIs cannot open an account there directly.

PensionBox is Zerodha's authorised partner for NPS. An NRI account opened here sits on the same Point of Presence and the same Central Recordkeeping Agency as an NPS account opened on Coin — so nothing about how your account is held or recorded is different. If you have arrived here from a Zerodha page or email, you are in the right place; sign in with your mobile number on PensionBox and the NRI flow will open directly.

Wherever you are in the world, your retirement can stay connected to India. Open your NPS account with PensionBox.

Frequently asked questions

Can NRIs open an NPS account?

Yes, NRIs and OCIs can open an NPS account if they are aged between 18 and 85, have a PAN, and hold an NRE or NRO bank account.

What documents are needed to open an NPS account for NRIs?

You will need a PAN, passport, NRE or NRO account details, a cancelled cheque, and scans of your photograph and signature.

Can NRIs contribute to NPS from a foreign bank account?

No, contributions must come from an NRE or NRO account in the NRI's own name.

What are the tax implications for NRIs investing in NPS?

NPS contributions are eligible for tax deductions under section 80CCD(1B), but NRIs should check the tax treatment in their country of residence.

What happens to an NPS account when an NRI turns 60?

Standard NPS exit rules apply. A portion can be taken as a lump sum and the rest is used to purchase an annuity.