| Date: |
29-10-2015
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| Notification No: |
RBI/2015-16/216 A.P. (DIR Series) Circular No. 24
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
RBI/2015-16/216 |
| Subject: |
Subscription to National Pension System by Non-Resident Indians (NRIs)
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RBI/2015-16/216
A.P. (DIR Series) Circular No. 24
October 29, 2015
To,
All Authorised Dealer Category – I Banks
Madam/Sir
Subscription to National Pension System by Non-Resident Indians (NRIs)
Attention of Authorised Dealers Category – I (AD Category - I) banks is invited
to the Foreign Exchange Management (Transfer or Issue of Security by a Person
Resident Outside India) Regulations, 2000, notified vide
Notification No. FEMA
20/2000-RB dated May 3, 2000, as amended from time to time.
- With a view to enabling NRIs’ access to old age income security, it
has now been decided, in consultation with the Government of India, to
enable National Pension System (NPS) as an investment option for NRIs under
FEMA, 1999. Accordingly, NRIs may subscribe to the NPS governed and
administered by the Pension Fund Regulatory and Development Authority
(PFRDA), provided such subscriptions are made through normal banking
channels and the person is eligible to invest as per the provisions of the
PFRDA Act.
- The subscription amounts shall be paid by the NRIs either by inward
remittance through normal banking channels or out of funds held in their
NRE/FCNR/NRO account. There shall be no restriction on repatriation of the
annuity/ accumulated savings.
- AD Category – I banks may bring the contents of this circular to the
notice of their constituents and customers concerned.
- Reserve Bank has since amended the subject Regulations accordingly
through the Foreign Exchange Management (Transfer or Issue of Security by a
Person Resident outside India) (Ninth Amendment) Regulations, 2015 which
have been notified vide
Notification No. FEMA.353/2015-RB dated October 6,
2015, vide G.S.R. No. 759 (E) dated October 6, 2015.
- The directions contained in this circular have been issued under section
10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999)
and are without prejudice to permissions / approvals, if any, required under
any other law.
Yours faithfully
(B. P. Kanungo)
Principal Chief General Manager
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