Moving abroad and becoming an NRI does not automatically mean your National Pension System (NPS) account will be closed.
Under the current rules of the Pension Fund Regulatory and Development Authority (PFRDA), Indian citizens can continue their NPS investments even after moving to another country.
However, there is one important change NRIs and Overseas Citizens of India (OCIs) need to know about.
Can NRIs Continue Their NPS Account?
Yes. If you move abroad but continue to hold Indian citizenship, you can continue your NPS Tier I account.
NPS is designed as a portable pension system.
This means your account does not need to be closed simply because you change your job, location or country of residence.
To continue the account as an NRI, you need to provide details of your NRE or NRO bank account.
Similar banking requirements apply to OCI subscribers.
You can continue making contributions through the available NPS channels.
Your money will remain invested according to your selected pension fund and asset allocation.
The Big Change: Tier II Account
While Tier I can continue after you become an NRI, Tier II has a different rule.
NRIs and OCIs cannot activate an NPS Tier II account.
So, if you already have an NPS Tier I account, you can continue it after moving abroad. But the facility to activate a new Tier II account is not available to NRIs and OCIs.
Where Is Your NPS Money Invested?
NPS allows subscribers to invest their money across different asset classes, including:
Equity
Corporate bonds
Government securities
Under Active Choice, you decide how your money should be divided among these asset classes.
In common NPS schemes, equity allocation 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 their investment choice up to four times in a financial year, subject to applicable rules.
What If You Give Up Indian Citizenship?
This is where the situation becomes different.
Simply moving abroad and becoming an NRI is not the same as giving up Indian citizenship.
If an NPS subscriber renounces Indian citizenship and also does not hold an OCI card, separate rules apply.
The PFRDA issued rules in April 2025 covering the closure of NPS accounts and settlement of the accumulated pension corpus in such situations.
The Bottom Line
Moving abroad does not mean you have to shut down your NPS account.
If you remain an Indian citizen, you can generally continue your Tier I NPS account, provided you meet the applicable NRE/NRO banking requirements.
But NRIs and OCIs cannot activate an NPS Tier II account.
So, before moving abroad, it is important to understand the rules that apply to your NPS account, bank account and citizenship status.
