PFRDA has given clarification regarding the process of exit from NPS. The regulatory body says that the subscriber can opt out of this scheme and choose any Salaam scheme.
The Pension Fund Regulatory and Development Authority (PFRDA) has issued a notification on 27 July 2023 to ease the rules for exiting the NPS i.e. National Pension Scheme. This will benefit crores of subscribers of NPS. It has been told in the issued notification that now NPS subscribers can choose any annual scheme by exiting the pension fund. The great thing is that no fee will be charged from the subscribers for this.
If someone wants to leave this pension scheme and exit, then he can easily do so. PFRDA has further simplified the rules to facilitate the people. PFRDA has ordered the nodal officers of Government, POP and National Pension System Trust to help NPS subscribers choose the scheme according to their needs so that they do not face any kind of trouble further.
No fee will be charged
PFRDA has said that customers can choose any kind of annual service and for that they will not have to pay any charge. The regulator has said that the subscribers are already paying tax to the government, so no additional charge will be taken from them. Insurance companies have been instructed that they can only take the premium amount from the subscriber. Apart from this, they should not be pressurized for any other kind of fee.
Rules for exit from NPS
According to the rules of PFRDA, if the amount deposited by the subscriber in NPS and interest in total is less than Rs 5 lakh, then he can withdraw the entire amount at once. If this is exceeded, 40 percent of the amount will be kept for pension and 60 percent of the amount can be withdrawn together. 40% of the amount is used to buy a pension plan. If the subscriber wants to buy a pension plan before the age of 60 years, then he will have to use at least 80 percent of the corpus.
