NPS Accounts to Be Closed If Indian Citizenship Is Given Up Without OCI Card

The National Pension System (NPS), regulated by the Pension Fund Regulatory and Development Authority (PFRDA), is open to Indian citizens aged 18 to 70 years. This includes resident Indians, Non-Resident Indians (NRIs), and Overseas Citizen of India (OCI) cardholders under specific conditions. The scheme enables long-term retirement savings through systematic contributions and tax-efficient returns.

New Directive for Renounced Citizens Without OCI Status

In a recent circular, PFRDA announced that any individual who gives up Indian citizenship and does not acquire an OCI card will no longer be eligible to maintain their NPS account. Such accounts must be mandatorily closed. This move aims to align pension eligibility with citizenship and regulatory compliance frameworks.

Mandatory Notification and Documentation for Closure

Subscribers who renounce their Indian citizenship are required to promptly notify the NPS Trust. Along with this intimation, they must submit two essential components:

• A written undertaking confirming both the renunciation of Indian citizenship and non-possession of an OCI card.

• Supporting documentation such as a renunciation certificate, a surrender certificate, or a cancelled Indian passport.

Only upon successful verification of these documents will the closure process proceed.

Read More: NPS: All you need to know.

Fund Settlement Through NRO Account

Once the documentation is verified, the entire accumulated corpus in the NPS account will be transferred exclusively to the subscriber’s Non-Resident Ordinary (NRO) bank account. PFRDA has clarified that no alternative channels will be permitted for fund remittance in such cases.

Conclusion

This regulatory update impacts individuals who renounced Indian citizenship but have not yet obtained OCI status. Without the OCI card, their eligibility for pension savings under the NPS framework ceases, necessitating timely action to ensure compliance and fund access.

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