NRI’s permitted to subscribe to National Pension System

The Reserve Bank of India on 6th October, 2015 vide Notification No. FEMA. 353 /2015-RB, amended Schedule 5 of the extant Foreign Exchange Management (Transfer or Issue of Securities by a Person Resident Outside India) Regulations, 2000 vide Foreign Exchange Management (Transfer or Issue of Securities by a Person Resident Outside India) (Ninth Amendment) Regulations, 2015.

In terms of the said amendment, a Non- Resident Indian (NRI) has now been permitted to subscribe to National Pension System governed and administered by Pension Fund Regulatory and Development Authority (PFRDA), subject to the condition that the person is eligible to invest as per the provisions of the PFRDA Act. However, payment by NRI against such subscription shall be made either by inward remittance through normal banking channels or out of funds held in his NRE/FCNR/NRO account. It is further provided that the annuity/accumulated saving of NRI will be repatriable outside India.