NPS Withdrawal: You can withdraw money partially for these purposes, but know the rules first

NPS Withdrawal: While the Pension Fund Regulatory and Development Authority (PFRDA) has allowed the National Pension System (NPS) account holders to partially withdraw money for treatment of coronavirus pandemic which has now been declared a critical illness, do you know for what other purposes you can withdraw the amount partially.

There are certain specified reasons for which an NPS subscriber can partially withdraw money from his account. It can be for higher education of his children, marriage of children or even purchase and construction of residential house. But there are certain conditions under which you can withdraw money for purchase and construction of house.

You can also withdraw money for critical illnesses including Covid-19.

Conditions of conditional withdrawal:
The PFRDA prescribes certain condition for the partial withdrawal of money from  your NPS account. They are as follows:

-- Subscriber should be in NPS system for at least 3 years
-- The subscriber is allowed to withdraw amount up to 25 per cent of the contributions made by him
-- The subscriber is allowed to withdraw up to a maximum of three times during the entire tenure of subscription

Partial withdrawal request can be initiated online by a subscriber. Alternatively, Subscriber can submit physical partial withdrawal form (601-PW) along with documents to POP, based on which POP can initiate online request.. However, POP is required to ‘Authorize’ the Withdrawal request in CRA system.

NPS is a voluntary, defined contribution retirement savings scheme designed to enable the subscribers to make optimum decisions regarding their future through systematic savings during their working life. NPS seeks to inculcate the habit of saving for retirement among the citizens.  It is an attempt towards finding a sustainable solution to the problem of providing adequate retirement income to every citizen of India.

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NPS is administered and regulated by PFRDA which is the regulator for the promotion and development of an organised pension system in the country.