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Jan 12, 2018 02:39 PM IST | Source:

NPS partial withdrawal norms notified; here’s how much you can withdraw and when

Besides other purposes, the pension regulator has stipulated 15 diseases for which a subscriber can withdraw from the accumulated corpus.

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The Pension Fund Regulatory and Development Authority (PFRDA) has notified liberalized partial withdrawal norms allowing National Pension System (NPS) subscribers to withdraw a maximum of 25 per cent of own contribution at any time before the final exit from NPS.

The guidelines notified by the pension regulator stipulates the terms and conditions, purpose, frequency and limits.

PURPOSES: As per the guidelines a subscriber can make partial withdrawal for the following purposes:

  • For higher education of his or her children including a legally adopted child

  • For marriage of his or her children, including a legally adopted child

  • For purchase or construction of residential house of flat in his or her own name or in a joint name of his or her legally wedded spouse. In case, the subscriber already owns either individually or in the joint name a residential house of flat, other than ancestral property, no withdrawal under these regulation shall be permitted

  • For treatment of specified illness: If the subscriber, his legally wedded spouse, children, including legally adopted child or dependent parents suffer from any specified illness which shall comprise of hospitalization and treatment in respect of the following disease:


-Kidney failure (end stage renal failure)

-Primary Pulmonary Arterial Hypertension

-Multiple Sclerosis

-Major Organ transplant

-Coronary Artery bypass graft

-Aorta graft surgery

-Heart Valve surgery


-Myocardial Infraction


-Total Blindness


-Accident of serious/life threatening nature

-Any other critical illness of a life threatening nature as stipulated in circulars, guidelines or notifications issued by the authority

LIMITS: The PFRDA has said that the permitted withdrawal shall be allowed only if the following eligibility criteria and limit for availing the benefit are complied with by the subscriber:

  • The subscriber shall have been in the NPS at least for a period of 3 years from the date of joining

  • The subscriber shall be permitted to withdraw accumulations not exceeding 25% 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 of withdrawal

FREQUENCY: The pension regulator has said that a subscriber shall be allowed to withdraw only a maximum of 3 times during the entire tenure of subscription under the NPS. The request for withdrawal shall be submitted by the subscriber along with relevant documents to the Central recordkeeping agency or the NPS Trust for processing of such withdrawal claim through their nodal office. However, if the subscriber is suffering from any of the specified illnesses, the request for withdrawal may be submitted through any family member of the subscriber.
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