Good News For NRIs! NPS KYC Norms Eased For Smoother NPS Onboarding | What It Means For You?

NPS Onboarding for NRIs: All the Non-Residential Indians (NRIs) and Overseas Citizens of India (OCIs) pay attention! The Pension Fund Regulatory and Development Authority of India (PFRDA) has recently revised norms for National Pension System (NPS) KYC. The revision on NPS Know Your Customer (KYC) norms will ensure smoother onboarding of NRIs and OCIs in the NPS schemes.

From now onwards, NRIs and OCI NPS subscribers can complete their re-KYC process from overseas. In its latest circular, the PFRDA has relaxed the requirement for the NPS subscriber to be present physically in India for KYC.

"In case of the digital onboarding for NRI/OCI subscribers, the requirement of capturing a live photograph of the subscribers, a digital copy of an officially valid document (OVD) and geo-coordinates of the captured location, all recorded electronically by an authorised official shall be applicable. For this purpose, the requirement of physical location of the subscriber being in India, during digital onboarding, shall be relaxed for KYC for the subscriber," read a circular issued by PFRDA on Tuesday, 2 December.

The relaxation also covers many existing NPS account holders. NRI and OCI subscribers no longer need to visit India for re-KYC or KYC changes, as long as specific verification steps are followed. However, this flexibility does not apply at the time of exit or withdrawal from the pension system.

NPS KYC Rules: What Changes for NRIs and OCIs?

As per the revised NPS onboarding KYC rules, an authorised official must capture the live photograph and OVD digitally. The official must also record the geo-coordinates of the applicant's location. This aims to ensure that the subscriber is present during the interaction and that the KYC process remains secure and verifiable.

Points of Presence and intermediaries must now run extra checks during NPS onboarding KYC for NRI and OCI applicants. They must compare the GPS latitude and longitude captured during onboarding with the country listed in the proof of address.

NPS KYC: What Should a Digital Onboarding Application Include?

The digital onboarding application used for NPS onboarding KYC must include liveness detection and randomness checks. It should also apply anti-spoofing and anti-deep fake tools, as highlighted in the master circular. These measures are meant to show that the video or image is live, authentic, and not pre-recorded or manipulated in any way.
Key Documents Required

As per the master circular, it mandatory for NRIs and OCIs applying for NPS to submit officially valid documents. An acceptable digital copy of the OVD must identify the subscriber, confirm identity and provide enough information for Customer Due Diligence. The name on the NPS application or KYC form must exactly match the Proof of Identity.
NRIs opening NPS tier 1 accounts can submit their passports as a Proof of Identity.

Who is an NRI?

A Non-resident Indian (NRI) is a citizen of the country or a person of Indian origin who is not residing in India for more than a fixed duration. The residential status must be determined before deciding whether an individual is treated as an NRI for NPS purposes.

Who is an OCI?

An OCI is described as a person of Indian origin who holds a foreign nationality and gets registered as an Overseas Citizen of India Cardholder under Section 7A of the Citizenship Act, 1955. These definitions guide which documentation applies for NPS onboarding KYC and ensure that eligibility and verification rules are applied consistently across subscribers.

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