These National Pension System (NPS) accounts will be closed soon. The government has changed the rules of NPS. Now if your NPS account falls in this special category, it will be closed soon.
There has been a big change for those customers investing in the pension scheme under the National Pension System (NPS) who have given up Indian citizenship. Those who no longer have an Overseas Citizen of India (OCI) card. The Pension Fund Regulatory and Development Authority (PFRDA) has issued a circular on 21 April 2025 and issued new guidelines in this regard.
What is said in the circular?
According to the circular, subscribers who have given up Indian citizenship on paper and who do not have an OCI card, will have to immediately inform the NPS Trust about the change in their citizenship. Also, proof of this will have to be given. After this, the NPS account of the concerned person will be closed and the entire pension amount deposited in it will be transferred to his NRO (Non-Resident Ordinary) account.
What is renunciation of Indian citizenship?
Renouncing Indian citizenship means voluntarily giving up your Indian citizenship. This usually happens when an Indian citizen acquires citizenship of another country. Dual citizenship is not allowed in India, so it is a legal process.
Who can open an NPS account?
Any Indian citizen aged between 18 and 70 years can open an NPS account. Apart from this, NRI and OCI cardholders can also open an account under certain conditions.
What should NPS subscribers do now?
If a subscriber has renounced Indian citizenship and does not have an OCI card, he must immediately inform the NPS Trust and submit the required documents.
How will the NPS account be closed?
To close the account, the subscriber has to submit a signed affidavit confirming the renunciation of citizenship. A copy of the certificate of renunciation of citizenship, surrender certificate or cancelled Indian passport has to be given. After verification, the NPS Trust and the concerned record keeping agencies (CRAs) will complete the account closure process and the amount will be transferred to the NRO account.
