Neutral impactEconomy
What Happens To Your Indian PPF And NPS Tier II Investments After Moving Abroad
NDTV Profit 2 hrs ago·18 Oct 2026, 6:05 am
The rules governing your Public Provident Fund (PPF) and National Pension System (NPS) Tier II account change significantly once you relocate outside India. While the PPF remains tax-exempt and continues to earn interest, the government restricts fresh contributions to these accounts for Non-Resident Indians (NRIs). Furthermore, you must convert your existing PPF account into a non-resident account, and withdrawals are strictly limited to the principal amount. Similarly, NPS Tier II investments can be continued, but you cannot make fresh contributions, and the account ceases to function as a tax-saving instrument for NRIs.
For investors, this shift means a change in financial planning and tax efficiency. The loss of tax benefits on fresh contributions is a key consideration, as is the restriction on liquidity. Since you cannot withdraw the full corpus easily, these funds effectively become long-term, illiquid investments. Investors must ensure their overall asset allocation aligns with their new status, as these accounts no longer serve as flexible tax-saving tools for those living abroad.
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- Category: Economy.
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