The Atal Pension Yojana (APY) is a government-backed pension scheme designed to provide financial security to Indian citizens. But can Non-Resident Indians (NRIs) enroll in APY? This guide explains the eligibility criteria, benefits, and alternatives for NRIs.
Can NRIs Apply for Atal Pension Yojana?
No, as per the current guidelines of the Pension Fund Regulatory and Development Authority (PFRDA), NRIs are not eligible to enroll in the Atal Pension Yojana. APY is specifically designed for Indian residents, particularly those in the unorganized sector who do not have access to other pension schemes.
Why Are NRIs Not Eligible for APY?
The main reasons for NRIs’ ineligibility include:
APY requires a savings account in an Indian bank with a valid auto-debit facility.
The scheme is meant for Indian residents who are not covered under statutory pension schemes.
APY contributions and benefits are structured under Indian taxation laws, which apply only to residents.
What Happens If an APY Subscriber Becomes an NRI?
If an existing APY subscriber moves abroad and gains NRI status, they must:
Notify their bank immediately about their change in residency status.
Close the APY account, as NRIs cannot continue contributions.
Withdraw their contributions, subject to exit rules.
Alternative Pension Schemes for NRIs
While NRIs cannot apply for APY, they can explore other pension investment options:
1. National Pension System (NPS)
NRIs can invest in NPS Tier-I and Tier-II accounts.
Provides market-linked returns with various investment options.
Some banks offer retirement savings plans tailored for NRIs.
3. Mutual Funds & ULIPs
NRIs can invest in mutual funds or unit-linked insurance plans (ULIPs) to build a retirement corpus.
Conclusion
Currently, NRIs are not allowed to enroll in the Atal Pension Yojana, as the scheme is designed for Indian residents. However, NRIs can explore alternative pension plans like NPS, fixed deposits, and investment-based retirement schemes.
