My brother, who works abroad, enquired about creating an NPS account a few months back. Because it appeared like a flexible way to manage his savings, he sought a Tier 2 account.As I was unsure, can NRI Open NPS Tier 2 account, I reached out to my friend, a legal expert. I asked him about the same and found NRIs are not eligible to open a Tier 2 account. I have also learnt a few more things from my friend which I informed to my brother later.
Can an NRI Open an NPS Tier II Account in India?
No. Here’s what I learned from my friend.
NRIs can open a Tier 1 account, which requires a minimum deposit of Rs.500. This account is a long-term retirement investment option.
Tier 2 accounts are exclusive to resident Indians, and you need an active Tier 1 account to open one.
Eligibility criteria for NRIs include being between 18 and 60 years old at the time of application and complying with KYC norms.
NPS accounts are portable, meaning you can manage them across different sectors and locations.
Contributions made by NRIs are subject to RBI and FEMA guidelines, ensuring compliance with Indian regulations.
Joint accounts are not allowed, and NRIs cannot open multiple NPS accounts.
OCI (Overseas Citizens of India), PIO (Persons of Indian Origin), and HUFs (Hindu Undivided Families) are not eligible for NPS accounts.
While Tier 2 accounts are off-limits for NRIs, Tier 1 offers a secure way to build retirement savings. I informed my brother, you can open a Tier 1 account. I hope you found this helpful.
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Authors Of The Question
Can NRI Open NPS Tier 2 Account?
Eerav678
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1 Answers
33 days
2024-11-29T23:05:03+00:00 2024-11-29T23:05:04+00:00Comment
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