NPS i.e. National Pension System is a scheme to provide pension after retirement. In this, any employee can register at his will and can also exit from it.
In the emergency before retirement, up to 60 percent of the amount can be withdrawn from the amount deposited in this fund. If an employee does not want to invest further in this scheme, then he can easily exit from it.
If you want to exit from NPS, then you get 3 different options for this. Normally exit takes place on completion of 60 years of age. The second option allows you to exit on your own before the completion of 60 years and the third option allows you to exit in case of sudden death of an account holder.
What are the exit rules from NPS?
After retirement, till the age of 75 years, the subscriber can choose lump sum or annual withdrawal ie pension option to exit NPS or can also postpone both. After 75 years, they have to exit from this scheme. However, its default option allows annual withdrawal of a minimum of 40 percent of the deposit amount and one-time withdrawal of the remaining 60 percent. At the same time, the customer also has the option of annual withdrawal of the entire amount.
How can I exit online?
You get both offline and online options to exit from NPS. To exit online, you can process your request through OTP or e-sign. According to PFRDA, in the online process, customers will be able to log in to the Central Record Keeping Agency (CRA) system and submit an exit request. Here they have to submit the details related to the exit.
Charges will have to be paid for processing the request
In this, customers can choose the option of lump sum or annual withdrawal. For this, the customer has to provide details of fund allocation, Annuity Service Provider (ASP), Annuity Scheme etc. Along with this, KYC and other documents will have to be uploaded.
After this POP also verifies the customer bank account number and uploaded documents with the help of ‘Instant Bank Account Verification’. To process this request, the customer also has to pay its charges. These charges are 0.125 percent of the total fund, which can be a minimum of Rs 125 and a maximum of Rs 500.
