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You can withdraw 25% from NPS after 3 years

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In a major relief to subscribers of the National Pension Scheme (NPS), the Pension Fund Regulatory and Development Authority (PFRDA) has cut down the time period for partial withdrawals subject to certain contingencies. NPS subscribers who have contributed for three years can now withdraw up to 25 per cent of the corpus, as per PFRDA's latest circular. Earlier, the partial withdrawal was allowed only after completion of 10 years of subscription

There was a lot of demand coming from the subscribers saying that 10 years is too long a period and in case of an emergency, they couldn't wait so long

The relaxation in withdrawal norms subject to certain conditions. Here we take a look at 10 important points NPS subscriber should be aware of:

  • Withdrawals are allowed for treatment of specified illness including family members, education of children, marriage expenses of children and purchase or construction of house.

  • The NPS subscribers are only allowed to withdraw the specified sum of money for treatment if the ailment suffered fall in the category of disease including cancer, kidney failure, multiple sclerosis, major organ transplant, stroke, heart valve surgery, coma, paralysis and total blindness among a few other major illness.

  • The education expenses include an amount of money spent for the studies of subscriber's own children including the legally adopted children.

  • For wedding expenses, the 25 per cent withdrawal can be made allowed so long as the subscriber's own child is getting married, including the legally adopted child.

  • The subscribers can withdraw money for construction of house only if the structure belong to them or in a joint name with their legally wedded spouse, that too if the subscribers don't own more than one house besides their ancestral properties.

  • The NPS subscribers are allowed to withdraw money a maximum of three times during the entire tenure of subscription.

  • In case a subscriber needs to withdraw for any of the above mentioned conditions, he/she needs to make the request to the central record keeping agency or the national pension system trust through the nodal office.

  • If the money is to be withdrawn for the treatment of subscriber, the withdrawal request can be made by his/her family member.

  • There will be no tax liability on the subscribers for partial withdrawals.


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