NPS Alert: The government has made important changes to the National Pension System (NPS) rules.
If your NPS account falls into a specific category, it may soon be automatically closed.
These new rules especially affect those who have given up Indian citizenship and no longer hold an OCI (Overseas Citizen of India) card.
The Pension Fund Regulatory and Development Authority (PFRDA) issued a new circular on April 21, 2025, with fresh guidelines.
What’s in the New Circular?
As per the circular, any person who has:
Renounced Indian citizenship, and
Does not hold an OCI card,
must immediately inform the NPS Trust about the change. They are also required to submit valid proof of citizenship renunciation.
Once verified, the NPS account will be closed, and the entire balance will be transferred to the subscriber’s NRO (Non-Resident Ordinary) bank account.
What Does Giving Up Indian Citizenship Mean?
Renouncing Indian citizenship means voluntarily giving up your Indian nationality, usually after acquiring citizenship of another country.
Since India doesn’t allow dual citizenship, you must go through a legal process to surrender your Indian passport and nationality.
Who Can Open an NPS Account?
Currently, the following can open an NPS account:
Indian citizens aged between 18 to 70 years
NRIs and OCI cardholders, under specific rules
What Should Affected Subscribers Do?
If you’ve renounced Indian citizenship and don’t have an OCI card, you must:
Inform the NPS Trust immediately
Submit documents proving the change in citizenship
How to Close Your NPS Account
To close the account, you’ll need to provide:
A signed affidavit confirming renunciation
A copy of the renunciation certificate, surrender certificate, or cancelled Indian passport
Once verified, the NPS Trust and the Record Keeping Agencies (CRAs) will process the account closure and transfer your funds to your NRO account.
