Pension Fund Regulatory and Development Authority, known as PFRDA, changed the rules for taking money out of the National Pension System account.
The new rules will start working from February 1, 2024, as said in the notice from PFRDA.
As per the new rules of NPS, people with NPS accounts can’t take out more than 25% of all the money they put in. This includes the amount they added and what their employer added.
When can you make partial withdrawal from NPS account-
As per PFRDA, NPS account holders can take money out from their NPS account only in specific situations. Here are some reasons:
1. You can withdraw from your NPS account to cover your children’s education and marriage expenses.
2. If you want to buy a house, you can withdraw from your NPS account for that.
3. In case of a medical emergency, you’re allowed to take money out from your NPS account.
4. If there’s a sudden need for money due to a disability, NPS account holders can withdraw funds.
5. Withdrawal is permitted from the NPS account to cover expenses related to skill development.
6. You can also use the NPS withdrawal facility to start a new business or a startup.
It is necessary to fulfill these conditions for NPS withdrawal-
1. Your account must be at least three years old to withdraw 25 percent.
2. The amount you take out shouldn’t be more than one fourth of all the money in your account.
3. You can make partial withdrawals from your NPS account up to three times.
How to withdraw money?
To take money out of your NPS account, you need to ask for it by telling them why you want it.
First, you have to submit a request to withdraw money. After that, the Central Recordkeeping Agency (CRA) will handle your request to take money out of your NPS account.
The money will be sent to your bank account in a few days after they check everything.
