Enrolment of Overseas Citizen of India (OCI) in National Pension System
This is with reference to PFRDA circular PFRDA/2019/19/PDES/3 dated 29th October 2019 and PFRDA/2019/24/PDES/5 dated 17th December 2019 with respect to the captioned subject, Enrolment of Overseas Citizen of India (OCI) in National Pension System, further details are mentioned as below:
Enrolment of Overseas Citizen of India (OCI) in National Pension System:
- National Pension Scheme (NPS) is a voluntary investment option for planning post-retirement life; for benefit of all Indian Citizens. NPS is governed by the Pension Fund Regulatory and Development Authority (PFRDA).
- NPS is now made available for Overseas Citizen of India (OCI).
- OCI will be considered at par with Non-Resident Indian (NRI) while subscribing to NPS.
- The option of the NPS Tier II account will not be available for both NRI & OCI Subscribers.
- The Government vides S.O.3732(E) dated 17th October 2019 has notified that ’ An NRI or an OCI may subscribe to the National Pension System governed and administered by Pension Fund Regulatory and Development Authority (PFRDA), provided such person is eligible to invest as per the provisions of the PFRDA Act. The annuity/accumulated saving will be repatriable’ (Schedule III (4) OF Foreign Exchange Management (Non-debt Instruments) Rules, 2019 dated 17th October 2019.
- All other instructions of the aforesaid Circular No: PFRDA/2015/PoP/03 dated 28th May 2015 shall remain in force.
- As per the Insurance Regulatory and Development Authority of India (IRDAI), it is hereby clarified that Annuity payable by ASPs to NRIs and OCIs will be taxed at source, at rates applicable as per the DTAA (Double Taxation Avoidance Agreements) of the country where the annuitant resides.
- Hence the intermediaries including Annuity Service Providers (ASPs) are required to display/convey to the prospective and existing subscribers that ’Annuities payable to NRI/OCI are subject to TDS’ and ’repatriation of the corpus, if any, will be subject to applicable laws and regulatory provisions of IRDAI/PFRDA/RBI’ in their relevant marketing materials/website (s) / brochures/communications.