# NRIs can invest in NPS but not in RBI floating rate bonds 2026-08-06T21:45:37+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) are eligible to open a National Pension System (NPS) Tier I account, says the Economic Times. Contributions must come from an NRE or NRO account and comply with KYC norms. Persons of Indian Origin (PIOs) cannot invest. The NPS offers tax deductions of up to Rs 2 lakh a year under Sections 80C and 80CCD(1B) of the old tax regime. Up to 60% of the corpus can be withdrawn tax-free at age 60; the rest must buy an annuity. However, NRIs cannot invest in RBI Floating Rate Savings Bonds 2020 (Taxable), the Economic Times adds. If a resident becomes an NRI while holding the bond, they may keep it but repatriability of proceeds follows FEMA rules. The bond pays 8.05% interest, is taxable, has a 7-year tenure, and a minimum investment of Rs 1,000. ## Coverage - economictimes.indiatimes.com - economictimes.indiatimes.com Tags: Income tax, NPS, NRIs, OCIs, retirement planning Canonical: https://indianopinion.org/nris-can-invest-in-nps-but-tier-ii-accounts-are-barred/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/nris-can-invest-in-nps-but-tier-ii-accounts-are-barred/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.