PFRDA has said in a press release that “With the abating of the pandemic-related difficulties & relaxation of lock down restrictions, the issue examined after taking into consideration of the prevalent practices, circumstances and law, it has been decided to make it mandatory for all the Government sector subscribers (Central/ State Govt & Central/State Autonomous Bodies) to submit their requests through their associated nodal offices."
The regulatory body has also made clear that it has issued a circular “dt.14.01.2021 on partial withdrawals under NPS through self-declaration for the benefit of subscribers as a special dispensation to cope with the Covid pandemic in order to protect the subscribers' interest and ease the burden of nodal officers including POPs from verification and authorization. The circular also provided for the option of submission of the partial withdrawal requests by the subscribers through their nodal office/POPs as per the prevalent practice. In terms of the said circular, the online requests of the Subscribers directly processed in CRA system post Instant Bank Acct Verification through penny drop, without the need for the authorization by the associated nodal officers/POPs. It has benefited the subscribers during the Covid pandemic and immobility caused due to lock downs in various parts of the country to contain the spread of corona."
The regulator went on to note that voluntary non-government NPS subscribers would still have access to the partial withdrawal option through the self-declaration mechanism. On behalf of the same PFRDA said “The subscribers belonging to the voluntary segment of the NPS (All citizens and Corporate) may continue to use the process."
According to NPS Trust “A subscriber can make partial withdrawal after joining the NPS after 10 years, not exceeding twenty-five per cent of the contributions made by him/her and excluding contribution made by employer, if any, at any time before exit from National Pension System subject to the terms and conditions, purpose, frequency and limits specified under Regulations 8 of PFRDA (Exits & Withdrawals under the NPS), Regulations, 2015."
Terms and conditions applicable for NPS partial withdrawals
According to Protean eGov Technologies Ltd, a Central Recordkeeping Agency (CRA) for the National Pension System (NPS), following are the conditions of Conditional Withdrawal:
1. Subscriber should be in NPS atleast for 3 years
2. Withdrawal amount will not exceed 25% of the contributions made by the Subscriber
3. Withdrawal can happen maximum of three times during the entire tenure of subscription.
4. Withdrawal is allowed only against the specified reasons, for example;
- Higher education of children
- Marriage of children
- For the purchase/construction of residential house (in specified conditions)
- For treatment of Critical illnesses
“Partial withdrawal request can be initiated online by Subscriber. Alternatively, Subscriber can submit physical partial withdrawal form (601-PW) along with documents to POP, based on which POP can initiate online request.. However, POP is required to ‘Authorize’ the Withdrawal request in CRA system," according to Protean eGov Technologies Limited (formerly NSDL e-Governance Infrastructure Limited).
