NPS Partial Withdrawal Rules: The rules for partial withdrawal from NPS have changed since February this year. This circular states that NPS investors can withdraw a maximum of 25 percent of the total amount deposited by them from their pension account under certain circumstances.
NPS Withdrawal Online: National Pension System (NPS) is a long term pension scheme, which provides the benefit of lump sum amount and pension on retirement. Pension Fund Regulatory and Development Authority (PFRDA) had issued a circular regarding partial withdrawal from NPS in January this year. Due to which the rules for partial withdrawal from NPS (NPS Withdrawal Rules) have changed from February this year. This circular states that NPS investors can withdraw a maximum of 25 percent of the total amount deposited by them from their pension account (NPS Account) under certain circumstances.
Money can be withdrawn from NPS account in these circumstances
- For higher education and marriage of children, including legally adopted child.
- Partial withdrawal can also be made for buying a house or repaying home loan. But remember, if you or your spouse already have a house in your name, then you will not be able to avail this facility to buy another house.
- Money can be withdrawn for hospital stay and treatment expenses due to serious illnesses.
- For medical and other expenses incurred due to disability or incapacitation of NPS account holders.
- For expenses incurred on skill development or any other self-development activity.
- For expenses incurred on starting a business or startup
Necessary conditions for partial withdrawal
Under the National Pension System, at the time of partial withdrawal, the person must be an NPS member for at least three years and the amount to be withdrawn cannot be more than 25 percent of the total contribution excluding your employer contribution. A maximum of three partial withdrawals (NPS Withdrawal Rules for Premature Withdrawal) are allowed during the entire subscription period. There must be a gap of 5 years between all three partial withdrawals.
Know how to withdraw money from NPS account
To withdraw 25% or less of the amount under NPS, first you have to go to any government nodal agency of NPS and fill a self-declaration form. In this, the purpose of withdrawing the money has to be mentioned. After this, the application has to be submitted to the Central Record Keeping Agency (CRA). Then the agency will process it after verification of the application. If the subscriber is ill, then any other member of the family or nominee can apply on his behalf.
