Moving abroad and becoming an NRI does not automatically close your National Pension System (NPS) account.
Under current Pension Fund Regulatory and Development Authority (PFRDA) rules, Indian citizens can continue their NPS even after moving to another country.
However, there are some important changes NRIs need to know about, especially regarding Tier I and Tier II accounts.
Your NPS Account Can Continue Even After Moving Abroad
If you move abroad for work, business or other reasons and become an NRI, you generally do not need to close your NPS Tier I account.
NPS is designed as a portable pension system, meaning your account can continue even if you change your job or country of residence.
NRIs and Overseas Citizens of India (OCIs) can continue with NPS Tier I, subject to the applicable rules.
To continue the account, NRI subscribers need to provide details or proof of an NRE or NRO bank account. Similar banking requirements apply to OCIs.
Your NPS contributions can continue through the available channels.
The money will remain invested according to your selected pension fund and investment allocation, with the account maintained through the Central Recordkeeping Agency (CRA).
But There Is One Major Change for NRIs
The biggest restriction comes with the NPS Tier II account.
NRIs and OCIs cannot activate an NPS Tier II account. So, while you can continue your existing Tier I account after moving abroad, the Tier II facility is not available to them.
This makes it important for anyone planning to move overseas to understand which part of their NPS account can continue and which facility will no longer be available.
Where Is Your NPS Money Invested?
NPS allows subscribers to invest their retirement savings across different asset classes.
These include:
Equities
Corporate bonds
Government securities
Under Active Choice, you decide how your money is divided between these asset classes. In common NPS schemes, equity exposure can go up to 75%.
Under Auto Choice, the investment mix is decided according to the selected life-cycle strategy and your age.
Subscribers can also change their pension fund once and change their investment choice up to four times in a financial year.
What If You Give Up Indian Citizenship?
There is an important difference between moving abroad as an NRI and giving up Indian citizenship.
Simply moving to another country does not mean your NPS account has to be closed as long as you continue to hold Indian citizenship and meet the applicable requirements.
However, if an NPS subscriber renounces Indian citizenship and does not hold an OCI card, different rules apply.
In April 2025, PFRDA issued rules covering the closure of NPS accounts and settlement of the accumulated pension corpus in such situations.
The Key Takeaway
If you move abroad and become an NRI, you do not automatically lose your NPS account.
Your Tier I account can generally continue, provided you follow the applicable NRE/NRO banking requirements. But NRIs and OCIs cannot activate an NPS Tier II account.
The rules become different if you give up Indian citizenship and no longer hold an OCI card.
