NPS Tips: Is there any way to make partial withdrawal in this scheme? Know the rules..

PS is a government scheme designed for retirement. In this scheme, your deposited money is divided in two ways. 60 percent of the amount is given to you as a pension fund after retirement, while 40 percent goes into an annuity, which prepares your pension. Pension Fund Regulatory and Development Authority (PFRDA) operates this scheme. But suppose you need money before retirement after starting an NPS account, then do you get any facility of partial withdrawal in NPS? Know about it here.

Under what conditions can partial withdrawal be made
PFRDA issued a circular regarding NPS's partial withdrawal on January 12, 2024. It was said in this circular that NPS account holders can withdraw up to 25% of the amount from the individual pension account excluding employer contributions. These rules have come into effect from February 1. Here know in which situations you can make partial withdrawal from your NPS account-

If you need money for your children's higher education, then you can make a partial withdrawal from NPS.

Account holders can also make partial withdrawals up to 25 percent for children's marriage.

Partial withdrawal can also be made for buying a house, home loan repayment, etc., but if you or your spouse already have a house in your name, then you will not be able to take advantage of this facility to buy another house.

Money can be withdrawn from the NPS account for hospitalization and treatment expenses during serious illnesses.

Money can be withdrawn in case of becoming medically disabled or disabled due to an accident.

Money can be withdrawn for hospitalization or treatment in case of serious illness.

You can also withdraw money for starting any kind of business, startup, skill development, or any course.

These conditions must be fulfilled for partial withdrawal

NPS subscribers must be members for at least three years from the joining date.

Amount can be withdrawn a maximum of 3 times during the entire subscription tenure. There must be a gap of 5 years between all three partial withdrawals.

You can withdraw only 25% of your total contribution.

How can you withdraw money?
To withdraw 25% or less of the amount under NPS, first, you have to apply to any government nodal agency of NPS.

A self-declaration has to be given with this application as to for what purpose you are withdrawing the amount.

After this, the application has to be submitted to the Central Recordkeeping Agency (CRA).

Then the agency will process the application after verification.

If the subscriber is ill, then a family member or nominee can make this request on his behalf.

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