People who are residents of India but live in another country get many facilities in India as well. NRIs have many rights, from casting votes to investing in various schemes. National Pension Scheme (NPS) is also one of those schemes in which NRIs can invest if they want. NPS is a government scheme that has been prepared for retirement. Through this scheme, any investor can arrange a pension for himself along with a retirement fund. But if NRIs want to invest in it, then what are the terms and conditions for them? Know here.

NRIs cannot contribute in Tier 2.

According to the rules, like any other Indian citizen, NRIs can also take advantage of the scheme by investing in the National Pension Scheme i.e. NPS. But the condition for them is that they can only open Tier-1 accounts, and cannot contribute in Tier-2. To open an NPS account, NRIs will also have to follow the existing KYC norms.

How can NRIs invest

To invest in NPS, first go to the official website eNPS. Select National Pension System (NPS) and go to the option of Register for NPS. Scroll down to the NRI option and click on Register Now. After this, provide information about your date of birth, PAN number, mobile number email ID etc., and by following the steps mentioned below and filling in the required information, they can get their registration done. Apart from this, they can also open the account offline. For this, they will have to go to the authorized branch of any Point of Presence (POP) fill out the form, and submit all the necessary documents.

While opening the account, documents like Aadhar card, PAN card, canceled cheque photocopy of passport, etc. are sought from the NRI. After this, investors have to open their accounts by paying Rs 500. Once a person's PRAN (Permanent Retirement Account Number) number is issued, it has to be verified within 90 days. For this, they receive an email through which they can verify their account. After the account is verified, NRIs can start investing in the scheme.

There are two types of NPS accounts.

Let us tell you that there are usually two types of accounts in NPS, Tier-1 and Tier-2. Tier 1 account can be opened by any person but Tier-2 account can be opened only if you have a Tier-1 account. However, NRIs are prohibited from contributing to NPS Tier-2 accounts. According to the rule, you can take 60 percent of the total amount invested in NPS in a lump sum after turning 60, while at least 40 percent of the amount has to be used as an annuity. You get the pension from this annuity.

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