Curated By: Business Desk
Last Updated: January 30, 2024, 20:51 IST
The withdrawal mustn’t exceed 25 per cent of the subscriber’s complete contribution to NPS.
As per new guidelines, the withdrawal could be comprised of the NPS account for youngsters’s schooling and marriage bills with a most of three withdrawals throughout its tenure.
The Pension Fund Regulatory and Development Authority ( PFRDA) has issued new tips for partial withdrawals beneath the National Pension System (NPS). It will come into impact from February 1.
The PFRDA round launched on January 12, acknowledged that the subscribers of NPS can now make partial withdrawals for functions comparable to increased schooling, marriage, residential home purchases and medical bills. The partial withdrawal mustn’t exceed 25 per cent of the subscriber’s complete contribution to their pension account.
The round additionally talked about that the returns generated on the contributions shall not be eligible for partial withdrawal. The subscriber shall be allowed to make a most of three withdrawals throughout its tenure. The subscriber’s NPS account should be three years previous to change into eligible for the partial withdrawal of as much as 25 per cent.
The NPS traders are additionally allowed to make partial withdrawals for the acquisition or development of a residential home or flat. However, if the subscriber owns a residential home or flat which is apart from their ancestral property then no withdrawal shall be permitted. In case of medical emergencies comparable to hospitalisation and therapy of power illnesses comparable to most cancers, Kidney failure, a number of sclerosis, coronary heart-associated surgical procedures, Covid-19 and life-threatening accidents, partial withdrawal is allowed to cowl such bills.
Subscriber also can partially withdraw from their NPS account for ability growth or another self-growth actions. You also can withdraw as much as 25 per cent of the deposited quantity if you wish to set up your personal enterprise or begin-up.
Eligibility And Withdrawal Request
The investor ought to have been a member of the NPS for not less than three years to change into eligible for the partial withdrawal advantages. It mustn’t exceed 25 per cent of the subscriber’s complete contribution. Three partial withdrawals are allowed per subscriber. For subsequent partial withdrawals, solely incremental contributions made by the subscriber from the date of the earlier partial withdrawal shall be allowed.
The subscriber ought to submit their withdrawal request together with a self-declaration stating the aim of the withdrawal. The paperwork should be submitted to their respective Government Nodal Office.
