IT also optimises the long-term retirement wealth creation.
Periodic NPS contributions can be automated for any defined amount.
New Delhi: The Pension Fund Regulatory and Development Authority (PFRDA) on Thursday said NRI subscribers are allowed to use the direct remittance, or D-Remit, facility that will facilitate automated contributions to NPS from their bank accounts.
PFRDA has now decided to extend the option of contribution into NPS (National Pension System) through D-Remit to NRI-NPS subscribers, who can contribute to their NPS accounts from funds in their Non-Resident Ordinary (NRO) or Non-Resident External Account (NRE) accounts, it said in a release.
Also, at the time of withdrawal, the proceeds of NPS shall be credited into NRO/NRE account of NRI subscribers, and repatriation would be done as per applicable FEMA guidelines, PFRDA said.
Highlights
One is NRE (Non Resident External) Account.
Other is NRO (Non Resident Ordinary) Account.
As per FEMA regulations, a Non-residential Indian or NRI cannot have a savings account in India. They need to transfer their bank account in India to an NRI account for;
● Holding their foreign earnings in Indian currency, or,
● Holding their Indian earnings in Indian currency
Alternatively, you can close your existing bank account and open a new NRI account from scratch.
There are two types of NRI accounts broadly;
1. NRE (Non Resident External) Account
2. NRO (Non Resident Ordinary) Account
Both these accounts are rupee-denominated accounts and can only be opened by an NRI or PIO (Person of Indian Origin). Moreover, both come in two variants - current and savings account.