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
(a) Cancer;
(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.
Limits
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.
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