NPS Withdrawal Rules: Pension Fund Regulatory and Development Authority i.e. PFRDA has made changes in the rules for withdrawal from the account under the National Pension System. According to the notification issued by PFRDA, these new rules will come into effect from February 1, 2024. According to the new rules of NPS, now no NPS account holder will be allowed to withdraw more than 25 percent of the total deposited amount. This includes the contribution amount of both the account holder and the employer.
When can you make partial withdrawal from NPS account-
According to PFRDA, NPS account holders get the facility of withdrawal from NPS account only under certain circumstances. Know about this-
1. Withdrawal can be made from NPS account for children’s education and marriage expenses.
2. You can withdraw from NPS account to buy a house.
3. In case of medical emergency, NPS subscribers get permission to withdraw from the account.
4. NPS account holder can withdraw money from the account to meet unexpected expenses due to disability or disability.
5. To meet the expenses of skill development, withdrawal permission is given from the NPS account.
6. NPS withdrawal facility is also available for starting a startup or business.
For NPS withdrawal it is necessary to fulfill these conditions-
1. To withdraw 25 percent amount from NPS account, your account must be three years old.
2. Along with this, the amount withdrawn should not be more than one fourth of your total amount.
3. NPS account holders are allowed to make partial withdrawals from their NPS account only a maximum of three times.
How to withdraw money?
To withdraw money from NPS account, the account holder must first submit a withdrawal request. Along with this, you will have to give information about the reason for withdrawing the money. After this, CRA (Central Recordkeeping Agency) will process your NPS withdrawal and the money will be transferred to your bank account within a few days after the completion of the verification process.