National Pension System: Govt allows partial withdrawal of money from NPS accounts; here's how to do it
New Delhi | Jagran Business Desk: The Pension Fund Regulatory and Development Authority (PFRDA) has allowed partial withdrawal from the National Pension System (NPS) account. The PFRDA said that the customers can withdraw the amount as the government has declared the coronavirus a pandemic, which is a life-threatening disease.
NPS is a very popular option in the country for retirement funds. People between 18 and 60 years of age can invest in the National Pension System and can get higher returns. Accounts can be opened under this scheme by going to all government and private banks around the country.
Under special circumstances, NPS customers can make a partial withdrawal after three years of joining. The withdrawal amount will not exceed 25 per cent of the contribution made by the customer.
Partial withdrawals can only be made up to three times during the entire tenure of your NPS account. Under the current rules of the national pension system, these partial withdrawals are completely tax-free.
On what grounds you can partially withdraw money from NPS account?
Children's higher education
For purchase/construction of a residential house
For the treatment of critical illnesses
NPS online withdrawal process
If you want to withdraw from NPS through online mode, then you will have to log in using the 12 digit Permanent Retirement Account Number (PRAN) and password.
How does it work?
The National Pension System works just like a mutual fund. It is for both government and private sector employees. Investors can withdraw a portion from the fund prepared after retirement and take an annuity from the remaining amount for regular income. In this, the investor has to deposit some amount every month during his job tenure.
How to open an account?
Customers can open an account through the OTP from home. Customers who want to open an NPS account through internet banking facility of their bank can open NPS account on registered mobile number through OTP.
Posted By: Talibuddin Khan