- You cannot open a new PPF account as an NRI.
- A PPF account opened while you were resident continues until it matures, but cannot be extended afterwards.
- NPS is open to NRIs and to OCI cardholders.
- NPS Tier I is available to non-residents; Tier II is not.
- Contributions come from an NRE or NRO account, and that choice decides how repatriable the money is later.
PPF: closed to new accounts
The rule is simple and often ignored by well-meaning relatives: a non-resident cannot open a Public Provident Fund account. Accounts opened by an NRI are irregular, and being an NRI is a status question under the day-count rules, not a matter of which passport you hold.
If you already had one before you moved, it does not vanish. It runs to maturity on its original term. What you lose is the extension — the five-year renewals a resident can keep taking are not available once you are non-resident. At maturity, the account closes and the proceeds are paid out.
Your bank or post office does not automatically know your status has changed. The obligation to report it sits with you, and an account left running incorrectly for years is a harder conversation than one reported on time. The same applies to your ordinary savings account, which has to become an NRO account.
That last point catches more people than PPF does: continuing to operate a resident savings account after moving abroad is a straightforward compliance problem with an easy fix.
NPS: open, and rarely used
The National Pension System is open to non-residents. An NRI between 18 and 70 with a PAN can open a Tier I account, and OCI cardholders were brought in as well. Registration is online, and contributions are made from an Indian bank account.
Tier II — the flexible, withdraw-anytime account — is not available to non-residents. For an NRI, NPS means the retirement account with its lock-in and its annuity requirement at exit, not the savings-style one.
- New accounts: not allowed
- Existing account: runs to maturity
- No extension after maturity
- Proceeds credited to your NRO account
- Cannot be used as a place to keep saving
- Open to NRIs and OCI holders
- Tier I only, no Tier II
- Funded from NRE or NRO
- Locked until retirement age, with limited exits
- Annuity requirement applies at exit
NRE or NRO for your contributions?
The account you fund from decides how much you can take out later.
Most NRIs hold both, and route each investment from the account that matches its goal.
Why the funding account matters more than the scheme
Money that goes in from an NRE account keeps its repatriable character. Money that goes in from an NRO account does not, and coming out later means the annual limit and the usual certificates. Deciding this at the start costs nothing; discovering it at retirement costs you flexibility.
India may give you a deduction for NPS contributions, but your country of residence decides whether it recognises an Indian pension wrapper at all. Some treat the growth as taxable each year regardless of the Indian lock-in. Confirm the position where you live before committing to decades of contributions.
If you move back
Returning changes both answers. Your PPF position and your account types all shift with residential status, and there is a window on return when several things are best done at once.
Can I open a PPF account as an NRI?
No. New PPF accounts are not available to non-residents.
What happens to my existing PPF account?
It continues until its maturity date on the original terms. It cannot be extended once it matures.
Can OCI cardholders open NPS?
Yes. OCI cardholders were made eligible, on the same basis as NRIs.
Can I get my NPS money out early?
Only in the limited circumstances the scheme allows, and an annuity requirement applies at exit. It is a retirement product, not a savings account.
Should I fund NPS from NRE or NRO?
NRE, if you want the money to be freely repatriable later. NRO funding ties the eventual proceeds to the annual remittance limit.
This article is for general information only and reflects rules current as of 2026. It is not legal, tax, or financial advice — rules, rates and procedures can change, so please confirm the current position with a qualified professional before acting.