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
