How to make partial withdrawal from NPS account
The primary objective of the National Pension System (NPS) is to build a retirement corpus, but subscribers may need funds before this. The NPS has a provision for partial withdrawal under specific conditions without requiring a closure of account.Eligibility criterion
To be eligible for a partial withdrawal, the subscriber should have been enrolled in the NPS for a minimum of three years.
Limit & frequency
The withdrawal limit is 25% of the subscriber’s contribution. They can make up to three partial withdrawals, with a five-year gap, throughout the life of their NPS account.
Permissible reasons
- Education or marriage expenses for children.
- Buying/construction of first house.
- Medical treatment for the subscriber or immediate family.
- Pursuing some skill development or self-improvement activities as approved by the PFRDA.
- Starting an entrepreneurial venture or startup in line with the PFRDA regulations.
Medical conditions
Eligible conditions include cancer, kidney failure, heart surgery, accident, etc. Here, the condition of five-year gap between withdrawals does not apply.
Process
A withdrawal request, with a self-declaration of the purpose and supporting documentation, must be submitted to the point of presence (PoP), nodal office, or associated entities. In case of illness, a family member can also submit the request.
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
This story originally appeared on: India Times - Author:Faqs of Insurances
