New NPS account closure rules: Check new rules to close NPS accounts for these accountholders

The Pension Fund Regulatory and Development Authority (PFRDA) has issued new guidelines for subscribers of the National Pension System (NPS) who renounce their Indian citizenship and do not hold an Overseas Citizen of India (OCI) card.

Renouncing Indian citizenship is a formal process in which an Indian citizen voluntarily relinquishes their Indian nationality, usually after attaining citizenship of another country. This is a legal procedure required under Indian law because the country does not allow dual citizenship.

Any Indian Citizen between the age of 18-70 years is allowed to open an individual pension account under NPS on a voluntary basis. The said account can also be opened by a Non-Resident Indian and Overseas Citizen of India (OCI) subject to fulfilment of certain conditions as stipulated under relevant circulars and guidelines issued by PFRDA from time to time.

The subscriber must submit an application for NPS account closure along with:
A signed undertaking confirming that they have renounced Indian citizenship and do not have an OCI card.
A certificate of renunciation, surrender certificate, or a cancelled Indian passport issued by a competent authority.
Once verified, NPS Trust and Central Recordkeeping Agencies (CRAs) will process the closure and transfer the funds to the subscriber’s NRO account.

If an NPS subscriber gives up Indian citizenship and does not obtain an OCI card, the following steps must be taken:
Inform NPS trust immediately

The subscriber must notify the NPS Trust about their change in citizenship status and provide relevant proof.

The NPS account will be closed, and the entire accumulated pension amount will be transferred to the subscriber’s NRO (Non-Resident Ordinary) bank account, following FEMA (Foreign Exchange Management Act) guidelines.