NPS for NRIs: Eligibility, Tax Savings, and Withdrawal Rules Explained

The National Pension System, or NPS, is a special savings plan for retirement in India.

Indian citizens who live in another country, called NRIs, can use it to save money for when they grow old.

People called OCIs, who have Indian roots but a foreign passport, can join too.

But people who are just of Indian origin, called PIOs, cannot join right now.

You can put money into a special bank account and get tax benefits from the Indian government.

When you turn 60, you can take out 60 percent of your money without paying tax.

The other 40 percent must be used to buy an annuity, which gives you a small pension every month.

If you take money out before 60, you can only take a small portion and the rest buys an annuity.

If you pass away, the money goes to your family without extra tax.

This plan helps people living far away save carefully for retirement.