PFRDA amends NPS partial withdrawal norms from 10 to 3 years

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PFRDA amends NPS partial withdrawal norms from ten to three years
PFRDA amends NPS partial withdrawal norms from ten to three years

PFRDA amends NPS partial withdrawal norms from 10 to 3 years. Good news for all National Pension Scheme subscribers. Now the subscribers can withdraw their money after the completion of three years of service. Pension Fund Regulatory Development Authority has relaxed the conditions for eligibility of partial withdrawals for National Pension Scheme. This will come into effect on 10th August 2017 retrospectively.

NPS partial withdrawal norms:

As per the existing terms of PFRDA, NPS subscribers will be able to withdraw their money only after completion of 10 years. However, these norms have been modified for three years. After three years, they can take their money. But it is only 25 percent of the accumulated money. Subscribers are not allowed to take beyond 25 percent.

The scheme has recently brought many changes to the need for the people. In the Budget 2015-16, the government has provided additional tax benefit up to Rs. 50,000 for this scheme. Moreover, the maximum age of the clients has increased from 60 years to 65 years.

Purposes of withdrawing NPS amount:

  • Higher education of children including legally adopted child
  • Marriage of children including legally adopted child
  • Construction of a residential house or flat in his/her name or joint name with his/her legally wedded spouse
  • For following medical treatment of family including himself/herself

Cancer, Kidney failure, Pulmonary arterial hypertension, multiple sclerosis, major organ transplant, coronary artery bypass graft, aorta graft surgery, heart valve surgery, Stroke, myocardial infarction, total blindness, Paralysis, Accident of serious/ life-threatening nature.

Read Also | Pradhan Mantri Vaya Vandana Yojana Scheme

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