NPS New Rules:  The Pension Fund Regulatory and Development Authority (PFRDA) has issued new rules for withdrawing money from the National Pension System (NPS) in a circular that will be in effect from February 01.

According to the notification, partial withdrawal from NPS NPS investors cannot withdraw more than 25 per cent of their contribution. These new rules will come into effect from February 1.

One can withdraw money for these reasons

To Purchase or construct a residential house jointly with the legally married spouse of the NPS member or subscriber. However, it should be the customer's first home other than the ancestral property.

For the treatment of Cancer, Kidney, High BP, Sclerosis, Coronary Bypass Surgery, Organ Transplant, Graft Surgery, Heart Valve Surgery, Myocardial Surgery, Complete Blindness, Paralysis, Coma, Life-threatening accidents etc.

Higher education and marriage of children, including legally adopted children.

Expenditure incurred for re-skilling, up-skilling or any other self-development work. To set up a business.

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Criteria for partial withdrawal?

To withdraw, the subscriber must have been an NPS member for at least three years and the amount cannot exceed 25 percent of the subscriber's total contributions. You must be aware that employer contributions are excluded from the calculations and partial withdrawal is allowed only of the amount contributed and not the returns received on it.

A maximum of three partial withdrawals are allowed during the subscription period. After the first withdrawal, regular contribution is required from the previous withdrawal till the second withdrawal.

How to Withdraw NPS

For partial withdrawal, customers need to visit the Point of Presence (POP) or government nodal office and fill out a self-declaration form. You need to give a reason for withdrawing money.

If the person is suffering from any of the diseases mentioned above, a family member can request on behalf of the customer.

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