INSUBCONTINENT EXCLUSIVE:
NPS subscriber can exit the pension scheme only after completion of 10 years.
The contribution made in the National Pension System (NPS) can help you sail through the tough time and
old age since the money invested in debt, equity and government bonds reaps dividends and is returned to you in form of annuity and lump sum
The wider perception among NPS subscribers is that the subscribers are allowed to withdraw the corpus only at the time of superannuation,
However, one can make the partial withdrawals only if the subscriber has been contributing for a minimum of three years.To widen the scope
of NPS withdrawals, the Pension fund regulator PFRDA recently announced that the NPS subscribers will have the option to partially withdraw
funds from their accounts for pursuing higher education or setting up new business
"Partial withdrawals will now be allowed to NPS subscribers who wish to improve their employability or acquire new skills by pursuing higher
education/ acquiring professional and technical qualifications," the PFRDA said in a statement.NPS Withdrawals rules: Ten Things to knowOne
In case of superannuation, a subscriber can claim 100 per cent withdrawal if the total accumulated corpus is less than or equal to Rs 2 lakh
at the time of superannuating age of 60 years.Two
In case of premature exit, you can withdraw the total accumulated corpus if it is less than or equal to Rs one lakh
However, you can exit from NPS only after completion of 10 years.Three
There is a scope of conditional withdrawal
There are several conditions prescribed for the same
To be able to withdraw money from the NPS corpus, subscriber should be in the NPS for a minimum of three yearsFive
The NPS withdrawal amount will not exceed 25 per cent of contributions made by the subscriberSix
The withdrawal is allowed against the specified reasons which include higher education of children, marriage of children, for the purchase/
construction of residential house and for the treatment of critical illnesses.Seven
Partial withdrawal: The partial withdrawal request can be initiated only online by the subscriber
Alternatively, subscriber can submit physical partial withdrawal form along with documentsEight:NPS offers two types of accounts - Tier I
The Tier II National Pension System (NPS) account is just like a savings account Subscribers are free to withdraw the money as and whenever
The withdrawal restrictions apply only in the tier 1 account.Nine
The subscriber can also check the NPS withdrawal status under the menu 'Exit Withdrawal Request'
Within this, there is 'Withdrawal Request status' view through their NPS account log in.Ten
It is worth noting that in case of premature exit, the pension starts immediately as long as the subscriber fulfills the age and corpus
