News:Pension Fund Regulatory and Development Authority (PFRDA) has now permitted Overseas Citizen of India(OCI) to enroll in the National Pension System(NPS) at par with Non-Resident Indians.
About National Pension System(NPS):
- National Pension System (NPS) is a government-sponsored pension scheme.
- It was launched in 2004 for government employees.However,in 2009,it was opened to all sections.
- NPS is being implemented and regulated by Pension Fund Regulatory and Development Authority in the country.
- The scheme allows subscribers to contribute regularly in a pension account during their working life.
- Upon retirement,subscribers can withdraw a part of the corpus in a lump sum and use the remaining corpus to buy an annuity to secure a regular income after retirement.
About Overseas Citizen of India:
- The Overseas Citizenship of India (OCI) is an immigration status permitting a foreign citizen of Indian origin to live and work in India indefinitely.
- The OCI was introduced in response to demands for dual citizenship by the Indian diaspora particularly in developed countries.
- An OCI is entitled to some benefits such as a multiple-entry, multi purpose life-long visa to visit India.
- However,OCI is not actual citizenship of India as it has many limitations such as no right to vote, no right to hold constitutional offices and no right to buy agricultural properties.
- PFRDA is a statutory body established under the Pension Fund Regulatory Development Authority(PFRDA) Act,2013.
- Its objective is to be a model regulator for promotion and development of an organized pension system to serve the old age income needs of people on a sustainable basis.
- It develops, promotes and regulates the pension industry under National Pension System and also administers the Atal Pension Yojana.