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If you also invest in the National Pension System, you can withdraw the amount from it before maturity. However, this month the Pension Fund Regulatory and Development Authority (PFRDA) has changed the rules for partial withdrawal from NPS. After this change the entire method of withdrawal has changed.
Well, today we will tell you what has changed in the rules of the National Pension System and how much money can now be withdrawn on the basis of the new rules.
What is the new rule of partial withdrawal?
PFRDA had issued a notification regarding new rules for partial withdrawal. According to the notification, now withdrawal can be made only after 3 years of opening the NPS account. Apart from this, now the account holder cannot withdraw more than 25 percent of the amount contributed. This rule has come into effect from 1 February 2024.
Understand it this way, if you have opened an NPS account in January 2020, then you can make partial withdrawal in the year 2024. Whereas if you have contributed Rs 1 lakh then you can withdraw only up to Rs 25,000.
When can you withdraw money from your NPS account?
In the National Pension System, you can withdraw money under certain circumstances.
You can withdraw money from your NPS account to buy a house.
You can also withdraw money from the account for your children's education or their marriage.
You can also withdraw parcel from NPS in case of medical emergency.
Even if you are about to start a new business or startup, you can withdraw money from the account.
You can withdraw money from the account for skill development expenses.
Even if the account holder becomes disabled due to an accident, he can withdraw money from the NPS account.
What are the conditions?
NPS account should be 3 years old.
Only one-fourth of the amount contributed can be withdrawn.
Partial withdrawal can be done only 3 times.
How to withdraw money from NPS account
To withdraw money from NPS account you have to submit a withdrawal request.
In this you will have to state the reason for withdrawal and submit documents related to it.
Following the withdrawal request, the Central Recordkeeping Agency processes the application.
The money will be credited to the account within a few days after the withdrawal request process is completed.
