NPS Withdrawal Rule: In view of the financial difficulties faced by the people during the Corona epidemic, the pension regulator PFRDA in January 2021, allowed NPS subscribers to submit online applications for partial withdrawal with the help of self-declaration.
These online applications sent by the subscribers were directly processed through the CRA system followed by instant bank account verification through penny drop. During the Corona Pandemic (Covid 19) during the lockdown in different parts of the country, the customers were greatly benefited from this facility.
But now after the easing of the Corona epidemic, PFRDA has issued a new order regarding this, according to which customers of all government sector customers (Centre, State and Central Autonomous Body) can now submit their application for partial withdrawal (NPS Partial Withdrawal). Will have to be submitted only after the nodal officer.
In a circular dated December 23, 2022, PFRDA said, “After abolishing the rules related to the corona pandemic and with the relaxation of the lockdown rules, it has been decided that all public sector customers (Central, State and Central Autonomous body) will have to submit a request for partial withdrawal from NPS to their respective nodal office.”
What are the partial withdrawal rules in NPS?
- Invest in NPS for at least 3 years
- 25% Withdrawals from the Subscriber’s Total Contribution
- Withdrawals possible a total of 3 times during the subscription period
- Partial withdrawal is possible for some important reasons
For what things partial withdrawal from NPS can be done (NPS Withdrawal Rule)
- for higher education of children
- for marriage of children
- home buying and renovation
- for the treatment of critical illness
Get the benefit of additional tax exemption on NPS
Investing in NPS gives the benefit of extra tax exemption of Rs 50,000 (NPS Benefits) under National Pension System 80CCD (1B). You can withdraw up to 60% of the corpus deposited on maturity. The remaining amount is kept for pension or annuity. This National Pension System Trust is supported by the Government of India and operated by the Pension Fund Regulator i.e. PFRDA under the Government of India, so it is absolutely safe to invest in it.
