Non-resident Indians
(NRIs) can invest in National Pension System (NPS) to get a social security
cover, pension regulator Pension Fund Regulatory and Development Authority's
(PFRDA)
RBI has communicated it
to PFRDA that NRIs are now eligible to make such investments, however, the
government will come out with a clarification on the Foreign Exchange
Management Act (FEMA) guidelines shortly, to facilitate non-resident
Indians to invest in National Pension System (NPS),
"There was some
ambiguity about whether to add NPS as eligible investment by NRI. So, we took
up the matter with RBI and very recently they have given this clarification
that NPS like insurance and mutual fund could also be eligible investment for
NRIs,"
"...the government
will shortly be coming out with clarification to that effect in the FEMA
guidelines"
Highlighting the
importance of NPS scheme for Non-Resident Indians (NRIs), he said such
residents especially living in the Middle-East don't have any mandatory social
security benefit.
This window would
provide NRIs an opportunity to save money for their old age, he said adding
that they would also enjoy the tax break as prescribed.
The Pension Fund Regulatory and Development
Authority (PFRDA) is in
talks with lenders such as SBI, HDFC Bank, Canara Bank, Indian Bank and several other south India-based banks
to tap potential NRIs.
"We have started
talking to bankers about attracting NRIs to enroll for NPS scheme. We see NRIs
as a very attractive market for NPS. We would like to push for NPS for the NRIs,"
The move will also help
to increase the subscriber base and expand the pension corpus in the private
sector.
The current corpus under the National Pension
System is Rs 91,000 crore.
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