National Pension System for NRIs introduced

INTERpensionThe Reserve Bank of India has opened up the National Pension System (NPS) for NRIs as an investment option.

NRIs may subscribe to the NPS governed and administered by the PFRDA, provided such subscriptions are made through normal banking channels and the person is eligible to invest per the provisions of the PFRDA Act.

The subscription amounts shall be paid by NRIs either by inward remittance or out of funds held in their NRE/FCNR/NRO account.

The PFRDA chairman Hemant G Contractor said pension coverage is woefully inadequate among Indians and the lack of traditional forms of support such as a joint family in the present times, is one of the reasons why pension schemes are of paramount importance.