The Pension Fund Regulatory and Development Authority (PFRDA) has allowed partial withdrawal from the National Pension System (NPS) account. The Pension Fund Regulatory and Development Authority has said through a circular to all stakeholders and customers under the NPS that the Indian government has declared the coronavirus pandemic, in which case the disease is life-threatening. National Pension System is a very popular option in the country for retirement funds. People between 18 and 60 years of age can invest in the National Pension System. Accounts can be opened under this scheme by going to all government and private banks around the country.
Under special circumstances, NPS customers can make a partial withdrawal after three years of joining. The withdrawal amount will not exceed 25 per cent of the contribution made by the customer.
Partial withdrawals can only be made up to three times during the entire tenure of your NPS account. Under the current rules of the national pension system, these partial withdrawals are completely tax-free.
What are the reasons for partial withdrawal is allowed?
- Children’s higher education
- Children’s wedding
- For purchase/construction of the residential house
- For the treatment of critical illnesses
NPS online withdrawal process
If you want to withdrawal from NPS online then for this you will have to log in using the 12 digit Permanent Retirement Account Number (PRAN) and password.
How does work?
The National Pension System is managed just like a mutual fund. It is for both government and private sector employees. Investors can withdraw a portion from the fund prepared after retirement and take an annuity from the remaining amount for regular income. In this, the investor has to deposit some amount every month during his job.
How to open an account
Customers can open an account through the OTP from home. Customers who want to open an NPS account through internet banking facility of their bank can open NPS account on registered mobile number through OTP.