Norms for withdrawal of National Pension System
Press Information Bureau
Government of India
Ministry of Finance
Government of India
Ministry of Finance
21-December-2018
NPS Withdrawal Norms
The Pension
Fund Regulatory and Development Authority (PFRDA) has changed the norms
for withdrawal of National Pension System (NPS) subscribers. Keeping in
view the possibility of sudden financial needs of the subscribers, the
requirement of minimum period under National Pension System (NPS) for
availing the facility of partial withdrawal from the mandatory Tier-I
account of the subscriber has been reduced from 10 years to 3 years from
the date of joining w.e.f. 10th August, 2017. The minimum gap of 5
years between two partial withdrawals has also been removed w.e.f. 10th
August, 2017. A subscriber is eligible for three partial withdrawals
during the period of subscription under NPS, each withdrawal not
exceeding twenty-five percent of the contributions made by the
subscriber and excluding contributions made by the employer. There is,
however, no restriction on withdrawals from the Tier-II account of the
subscriber.
The extent and purpose for which partial withdrawals from the Tier-I account under NPS are permissible are as under:
Purpose
i. for higher education and marriage of his or her children including a legally adopted child;
ii. for the purchase or construction of a
residential house or flat in his or her own name or in a joint name
with his or her legally wedded spouse. In case, the subscriber already
owns either individually or in the joint name a residential house or
flat, other than ancestral property, no withdrawal under these
regulations shall be permitted;
iii. for treatment of specified
illnesses: if the subscriber, his legally wedded spouse, children,
including a legally adopted child or dependent parents suffer from any
specified illness, which shall comprise of hospitalization and treatment
in respect of the following diseases:
(b)Kidney Failure (End Stage Renal Failure);
(c)Primary Pulmonary Arterial Hypertension;
(d)Multiple Sclerosis;
(e)Major Organ Transplant
(f)Coronary Artery Bypass Graft;
(g)Aorta Graft Surgery;
(h)Heart Valve Surgery;
(i)Stroke;
(j)Myocardial Infarction;
(k)Coma;
(l)Total blindness;
(m)Paralysis;
(n)Accident of serious/ life threatening nature.
(o)Any other critical illness of a life
threatening nature as stipulated in the circulars, guidelines or
notifications issued by the Authority from time to time.
iv. Towards meeting the expenses by subscriber for skill development/re-skilling or for any other self-development activities.
v. Towards meeting the expenses by subscriber for establishment of own venture or any start-ups.
vi. To meet medical & incidental expenses arranging out of disability or incapacitation suffered.
Limits
i. The subscriber should have been in
the National Pension System at least for a period of three years from
the date of his or her joining;
ii. The subscriber shall be permitted to
withdraw accumulations not exceeding twenty-five per cent of the
contributions made by him or her and standing to his or her credit in
his or her individual pension account, as on the date of application for
withdrawal;
Frequency
The subscriber shall be allowed to make
partial withdrawals for a maximum of three times during the entire
tenure of subscription under the NPS. There is, however, no minimum time
gap now stipulated between two partial withdrawals.
This was stated by Shri Ship Pratap Shukla, Minister of State for Finance in a written reply to a question in Lok Sabha today.
Source: PIB