Partial withdrawal from NPS now possible
The Pension Fund Regulatory and Development Authority (PFRDA) has made several changes in its rules to make the National Pension System (NPS) an attractive retirement savings scheme. Partial withdrawal from NPS was not allowed earlier, but now it can be done due to the recent change in the rules. At the same time, the process of partial withdrawal from NPS has also been simplified. However, there are some conditions for partial withdrawal from NPS.
Partial withdrawal conditions from NPS
Partial withdrawal from NPS account can be done after completion of three years. Also, there is a limit to the withdrawal amount. A subscriber can withdraw up to 25 percent of their own contribution. Suppose you have invested Rs 2 lakh in your account in five years, but the total fund has increased to Rs 3.5 lakh. Then, according to the rule, a subscriber can withdraw only 25 percent of their own contribution, ie, up to Rs 50,000.
Partial withdrawal can be done for the treatment of life-threatening diseases, marriage, higher education of children, purchase / construction of property or starting a new venture. A subscriber may make a maximum of three partial withdrawals during the total period. At the same time, there should be a gap of 5 years between two partial withdrawals. However, the condition of 5 years interval is not applicable in case of withdrawal for the treatment of specified disease.
How to withdraw from NPS ?
Previously, the customer had to go to the nodal office and submit documents for partial withdrawal from NPS. Now subscribers can do this by logging on to the eNPS website through online and self-declaration. Here your application will be processed and the amount will be deposited in the subscriber’s bank account within five days.
