Archive · 7 Sep 2026
PFRDA Explains NPS Rules for Indians Moving Abroad
The National Pension System is a way to save money for retirement.
An Indian who moves to another country can usually keep their NPS Tier I account.
Overseas Citizens of India can also use Tier I accounts under the applicable rules.
These subscribers must provide details of an NRE or NRO bank account.
They can continue making contributions through available channels.
Their money can be invested in equity, corporate bonds, or government securities, depending on their chosen option.
However, NRIs and OCIs cannot activate an NPS Tier II account.
They can change their pension fund once a year and their investment choice four times a year.
Different rules apply if someone gives up Indian citizenship and does not have an OCI card.
NRIs and Overseas Citizens of India can generally hold NPS Tier I accounts.
Moving abroad does not automatically require an Indian citizen to close or withdraw NPS savings.
NRIs and OCIs must provide proof of an NRE or NRO bank account.
NRIs and OCIs are not permitted to activate NPS Tier II accounts.
Those who renounce Indian citizenship without holding an OCI card are subject to separate account-closure rules.
- Who
- Non-resident Indians, Overseas Citizens of India, and other eligible NPS subscribers.
- What
- PFRDA says eligible NRIs and OCIs can retain NPS Tier I accounts, but cannot activate Tier II accounts.
- When
- Under current PFRDA guidelines, with related clarifications issued in 2019 and April 2025.
- Where
- The rules apply when an NPS subscriber moves abroad and becomes a non-resident.
- Why
- NPS is portable across employment and geographic locations, but non-resident subscribers must comply with applicable banking and account rules.
- Eligible subscribers
- Indian citizens, including non-residents, and Overseas Citizens of India can subscribe to NPS subject to applicable rules.
- Account that can continue
- NRIs and OCIs can hold NPS Tier I accounts after moving abroad.
- Banking documentation
- NRIs and OCIs must provide proof of an NRE or NRO bank account.
- Tier II restriction
- NRIs and OCIs are not permitted to activate NPS Tier II accounts.
- Investment options
- Contributions may be invested in equity, corporate bonds, and government securities under applicable guidelines.
- Choice changes
- Subscribers can change their pension fund once per financial year and their investment choice four times per financial year.
- Citizenship renunciation
- Separate rules apply to subscribers who renounce Indian citizenship and do not hold an OCI card.