New NPS rules: How to close your account after renouncing Indian citizenship
The Pension Fund Regulatory and Development Authority (PFRDA) has recently introduced new guidelines for National Pension System (NPS) subscribers who renounce their Indian citizenship.
These guidelines clarify the process for closing NPS accounts for individuals who no longer hold Indian citizenship and have not obtained an Overseas Citizen of India (OCI) card.
Renouncing Indian citizenship is a legal process where an individual voluntarily gives up their Indian nationality, usually after acquiring citizenship of another country. India does not permit dual citizenship, so this process is required when someone wants to become a citizen of another nation.
'In respect of such subscribers who have validly renounced their Indian citizenship and do not hold an OCI card, the said subscriber is required to forthwith intimate National Pension System Trust (NPS Trust) of the change in status along with proof thereof and PRAN/NPS account held by the subscriber shall be closed and the entire accumulated pension wealth may be transferred to Non-Resident Ordinary (NRO) account only,' stated PFRDA in a circular dated April 21, 2025. WHO CAN OPEN AN NPS ACCOUNT IN INDIA?
Any Indian citizen aged between 18 and 70 years can open an NPS account. Additionally, Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) can also open an NPS account, as long as they meet the necessary requirements set by the PFRDA.
If a subscriber renounces their Indian citizenship, they need to follow a few steps to close their NPS account.
Firstly, they must apply for account closure by submitting an undertaking confirming that they have given up their Indian citizenship and do not possess an OCI card.
They will also need to provide proof of their renunciation, such as a renunciation certificate, a surrender certificate, or a cancelled Indian passport.
'The subscriber shall submit an application for closure of his/her NPS account along with the following additional documents to NPS Trust: An Undertaking stating that s/he has renounced his/her Indian citizenship and does not hold an OCI card. Valid certificate of Renunciation of India Citizenship/ Surrender Certificate/ Cancelled Indian Passport, issued by competent authority,' mentioned the circular.
Once the NPS Trust and the Central Recordkeeping Agencies (CRAs) verify these documents, the account will be closed, and the pension funds will be transferred to the subscriber's Non-Resident Ordinary (NRO) account. This transfer will follow the rules laid out under the Foreign Exchange Management Act (FEMA).
If an NPS subscriber renounces their Indian citizenship and does not obtain an OCI card, they should immediately inform the NPS Trust and provide the required documentation. This will help ensure their NPS account is closed smoothly and that their pension amount is properly transferred.
These changes aim to streamline the process for individuals who give up their Indian citizenship, ensuring they can manage their NPS funds appropriately even after moving abroad.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
25 minutes ago
- Time of India
Zimbabwe Takes Tech's Help To Track Starving Elephants, Prevent Deadly Invasions
Elon Musk's Tesla Not Interested to Make Electric Cars in India, Only Showrooms Coming Up: Minister Despite India's aggressive new EV policy and Tesla's local hiring spree, Heavy Industries Minister H D Kumaraswamy has confirmed that Tesla has no immediate plans to manufacture electric vehicles in India. Tesla is preparing to launch its first EV in the Indian market in 2–3 months, but only as imports. India's EV policy offers duty cuts in exchange for local investment, yet Tesla remains cautious amid its global slowdown. Will this impact India's vision to become an EV hub?#teslaindia #elonmusk #electricvehicles #evpolicy #teslaupdate #indianeconomy #hdkumarswamy #automotiveindustry #toibharat 12.0K views | 2 days ago
New Indian Express
35 minutes ago
- New Indian Express
Adani Airports raises 750 million dollars to refinance debt, expand capacity
MUMBAI: Adani Airports Holdings has raised 750 million dollars through External Commercial Borrowings (ECB) from a consortium of international banks. The funds will be used to refinance existing debt, invest in infrastructure upgrades, and expand capacity at six airports—Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram. The borrowed amount will also support the growth of non-aeronautical businesses, such as retail, food and beverage, duty-free, and other services across the airport network. The transaction was led by First Abu Dhabi Bank, Barclays PLC, and Standard Chartered Bank. Adani Airports Holdings, a subsidiary of Adani Enterprises and the country's largest private airport operator, served 94 million passengers in the financial year 2024–25. The company's total handling capacity currently stands at 110 million passengers, and it plans to triple this figure to 300 million passengers per year by 2040 through phased expansion. As part of this growth plan, the Navi Mumbai International Airport is expected to become operational soon. It will initially handle 20 million passengers, with capacity set to increase to 90 million annually in later phases. 'AAHL is well on its path to deliver exceptional customer experiences, leveraging technology for seamless operations, and prioritizing sustainability and community engagement across its airport network,' said Arun Bansal, CEO of AAHL. Latham and Watkins LLP and Linklaters LLP acted as English law counsel for the deal, while Cyril Amarchand Mangaldas and TT&A served as Indian legal advisors.
Time of India
an hour ago
- Time of India
Banned single-use plastics dominate waste streams in Vijayawada & Tirupati
Visakhapatnam: A study conducted by the Central Pollution Control Board in Vijayawada and Tirupati has found that banned single-use plastics (SUPs) constitute a significant portion of total plastic waste. Tired of too many ads? go ad free now For instance, in Vijayawada alone, banned SUPs account for approximately 26% of total plastic waste. The most commonly found banned SUPs in the waste stream are carry bags and plastic sheets, each representing over 38% (by weight) of all banned SUPs. Cutlery items, another prominent category of banned SUPs, make up 16% of the total. The contribution of the remaining banned SUPs is less than 9%. A market survey evaluated the availability of banned SUP items and their alternatives across 144 shops in four distinct market zones in Vijayawada: Bhavanipuram (North), Patamata (South), Gundnala (East), and Krishnalanka (West). The overall market landscape suggests a positive shift, with 'only alternatives' dominating approximately 60% of product availability, while 'only SUPs' account for around 30%, and 'both' options represent roughly 10%. However, the transition is not uniform across all product categories. Items such as plastic sheets and balloon sticks still exhibit a high prevalence of 'only SUPs,' exceeding 60% in some cases, highlighting persistent challenges in their replacement. Conversely, categories such as spoons, forks, knives, plates, and straws show overwhelming adoption of 'only alternatives,' reaching up to 90%. A significant 'both' presence for items like plastic flags, cigarette packets, and candy sticks suggests a transitional phase where both SUPs and alternatives coexist. Similarly, banned SUPs comprise approximately 6.9% of total plastic waste in Tirupati. The most commonly found banned SUPs in the waste stream are carry bags, which account for over 95.3% (by weight) of all banned SUPs. Tired of too many ads? go ad free now Cutlery items, make up 2.6% of the total banned SUPs, a relatively lower proportion compared to most other Indian cities. The remaining banned SUPs contribute less than 2%. Like in Vijayawada, a survey conducted across 140 shops in four key markets of Tirupati, including Anna Rao Circle (North), Gandhi Road (South), Renigunta Road (East), and S V Nagar (West), revealed a significant prevalence of SUPs. Overall, approximately 40-50% of surveyed items were found to be exclusively single-use plastics, while a similar percentage (40-50%) indicated that both SUPs and their alternatives were available. Crucially, items available solely as alternatives constituted a significantly low proportion, comprising less than 10% of the total in Tirupati. Categories such as generic plastic items, cigarette packets, PVC banners, and thermocol decorative items demonstrated an overwhelming dominance (90% or more) by 'only SUPs,' signalling substantial hurdles in their phase-out. In contrast, items like carry bags and sweet boxes exhibited a relatively higher adoption of alternatives or a mixed market presence, indicating segments where the transition is more evident.
