Guidelines for Partial Withdrawals from the National Pension System (NPS)
MAS Team | 22 February 2024
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The National Pension System (NPS) serves as a vital tool for long-term wealth creation, offering individuals the opportunity to secure their financial futures. However, unforeseen circumstances may arise, necessitating the need for partial withdrawals from one's pension corpus.
In accordance with regulations set forth by the Pension Fund Regulatory and Development Authority (PFRDA), subscribers are permitted to make partial withdrawals, albeit limited to 25% of their individual contributions to the pension account, excluding any contributions made by their employer.
Recently, the pension fund body issued a comprehensive master circular detailing the permissible reasons for such partial withdrawals. These include:
A. Education Expenses: Partial withdrawals are allowed for meeting the higher education expenses of the subscriber's children, including legally adopted children.
B. Marriage Expenses: Subscribers may withdraw funds to cover the marriage expenses of their children, including legally adopted children.
C. Housing Needs: Funds can be withdrawn for the purchase or construction of a residential house or flat in the subscriber's name or jointly with their legally wedded spouse. It's important to note that if the subscriber already owns a house, no withdrawal is permitted for this purpose.
D. Medical Emergencies: Partial withdrawals are permissible for the treatment of specified illnesses, including hospitalization and expenses related to critical diseases.
These guidelines provide subscribers with flexibility and support during times of need while ensuring the integrity and sustainability of the NPS framework. It's essential for subscribers to familiarize themselves with these regulations and exercise prudence when considering partial withdrawals from their pension accounts.
Dear Investor,
In case of any grievance / complaint :
In case of any grievance / complaint :
- Please contact Compliance Officer Shraddha Mhatre at [email protected] and Phone No. - 91-22-35131664.
- You may also approach CEO Debashis Basu at email- id [email protected] and Phone No. - 91-22-35131664.
