NPS Withdrawal Rule Change: The rules for withdrawing money from NPS will change from April 1

NPS Rule Change: PFRD is going to implement a new rule to withdraw money from the National Pension System Scheme. This rule will come into force from 1 April.

It will be mandatory to give some documents under this rule. If the subscribers do not upload these documents then they will not be able to withdraw money from NPS. In the circular issued on February 22, it has been said that it will be mandatory to give KYC documents to the subscribers. PFRDA has asked the nodal officers and subscribers to ensure mandatory uploading of these documents. If any kind of mistake is found in these documents, then the money of NPS can be stopped.

What documents will be required 

Before withdrawing, you must ensure that you have uploaded the NPS withdrawal form or not. The information in the withdrawal form should be filled according to the identity card and address proof. There should also be a copy of bank account proof, PRAN or Permanent Retirement Account Number card. If any of these documents is not uploaded then money cannot be withdrawn from NPS.

Upload documents like this 

• Login to upload documents on CRA system.
• Can send request for login based on e-sign, OTP authentication.
• Information like address, bank details, nominee details will be auto uploaded during the request.
• Now the subscriber has to select lump sum annuity amount and details.
• After this your bank account will have to be verified.
• Also request for uploading of KYC documents as proof of identity and address, PRAN card and bank proof.
• Must have scanned document and scanned photograph.
• Subscriber can complete the process using OTP authentication and e-sign with the help of Aadhaar.

What is the rule for withdrawing money from NPS? 

Currently, NPS subscribers can withdraw up to 60 per cent of the total corpus in a lump sum. Whereas 40 percent of the corpus can be utilised. Suppose if your total NPS corpus is Rs 5 lakh, then after completion of maturity, the subscriber will be able to withdraw 60% of this amount. On the other hand, if you withdraw before maturity, you will need to buy annuity from 80 percent of the corpus.