NPS New Rule 2025: PFRDA Notification To Close NPS Account For THESE Subscribers

The Pension Fund Regulatory and Development Authority (PFRDA) has issued new guidelines for subscribers of the National Pension System (NPS) who have renounced their Indian citizenship and do not possess an Overseas Citizen of India (OCI) card. 

According to a PFRDA circular, such subscribers will have to inform the NPS Trust of their change in status, and their PRAN/NPS account will be closed. The entire accumulated pension wealth of the subscriber will be transferred to the NRO account.

A PFRDA circular issued on April 21, 2025, states, “in respect of such subscribers who have validly renounced their Indian citizenship and do not hold an OCI card, the said subscriber is required to forthwith intimate National Pension System Trust (NPS Trust) of the change in status along-with proof thereof and PRAN/NPS account held by the subscriber shall be closed and the entire accumulated pension wealth may be transferred to Non-Resident Ordinary (NRO) account only.”

NPS subscriber who have given up their Indian citizenship and do not possess an OCI card must take the following steps:

When a subscriber's citizenship status changes, they must inform the NPS Trust and submit the necessary documentation.

The PRAN/NPS account held by the subscriber will be closed. The entire accumulated pension amount of the subscriber will be transferred to their NRO account, following FEMA guidelines.

The subscriber must submit an application for NPS account closure along with the following documents to NPS trust:

- A signed undertaking confirming that they have renounced Indian citizenship and do not hold an OCI card.

- A certificate of renunciation of Indian citizenship, a surrender certificate, or a cancelled Indian passport issued by a competent authority.

- After verification, NPS Trust and Central Recordkeeping Agencies (CRAs) will process the closure and transfer the funds to the NRO account of the subscriber.