Know all about the Modi government's next big step to appease the NRIs

Non-residents of India or NRIs can now avail the facilities which every other Indians enjoy to secure their old-age income. They can now invest in the National Pension Scheme which is governed and administered by the Pension Fund Regulatory and Development Authority, RBI said. The step has been taken in consultation with the government.

RBI said that investment has to be routed through normal banking channels. The subscription amounts should be paid by NRIs either by inward remittance through normal banking channels or out of funds held in their NRE/FCNR/NRO account. There will be no restriction on repatriation of the annuity or accumulated savings.

Minimum annual subscription under NPS is Rs 6,000 while allocation to equities is capped at 50% of investment.

NPS investments mature when the investor turns 60. If the corpus is less than Rs 2 lakh, the entire sum can be withdrawn. If it is more, the subscriber must put at least 40% of the corpus into an annuity to get a monthly pension.

(Image credits: Indiatimes)