NPS Withdrawal Rules Change from Feb 1: Here is complete details

NPS Withdrawal Rules: The Pension Fund Regulatory and Development Authority (PFRDA) has released new guidelines for pension withdrawal through the National Pension System (NPS). These new rules will come into effect from February 1, 2024.

Under these rules, NPS has imposed certain conditions on the subscribers withdrawing partial amount from their pension accounts.

Withdrawal Amount Limit :

As per the revised rules, NPS subscribers can withdraw a maximum of 25 per cent contributions from their pension accounts excluding employer/company share. However, certain conditions are imposed on the amount so withdrawn.

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Partial amount can be withdrawn for the following reasons:

Under the new rule partial withdrawal of amount is permitted for various reasons including higher education expenses of children, marriage expenses, purchase or construction of house property, medical expenses for certain diseases, disability related expenses, skill development, re-skilling and establishment.

Pre-conditions for withdrawing money:

Subscribers must be NPS members for at least three years from the date of joining to be eligible for partial refund. Only one-fourth of the subscriber’s total contributions can be withdrawn.

How to process refund requests? :

To withdraw the pension amount the subscriber has to submit a request to the Central Registration Agency (CRA) with a self-declaration stating the intention to withdraw the amount through their government office or center of presence.

eNPS Account :

Recently the Pension Fund Regulatory and Development Authority PFRDA has made a major change in the rules for opening NPS account. Now government employees can open their NPS account through ENPS. The entire process of eNPS is a paperless process. And it can be done very easily. NPS is a pension scheme run by PFRDA, a government agency. Both government and private sectors can invest in it.

What is eNPS? :

eNPS is a digital platform through which, Central, State Government employees and employees of Government Related Organizations can open their eNPS account. Government employees can open their eNPS account in two ways.

First Way – Through Aadhaar Online and Offline KYC.

Second way – Through PAN card along with other KYC documents.