Online withdrawal request from NPS can be initiated by the subscribers using I-PIN provided to them. Such requests need to be verified and authorized by the nodal office. In case the subscriber is not able to initiate online Withdrawal request, they need to submit the physical withdrawal form along with the required documents to the nodal office based on which Nodal Office will initiate online Withdrawal request on behalf of the Subscriber.
When can a Subscriber exit from NPS?
As per PFRDA (Exits & Withdrawals under NPS) Regulations 2015, following Withdrawal categories are allowed:
Upon Normal Superannuation: At least 40% of the accumulated pension wealth of the Subscriber has to be utilized for purchase of an Annuity providing for a monthly pension to the Subscriber and the balance is paid as lump sum to the Subscriber. In case the total corpus in the account is less than or equal to Rs. 2 lakh as on the Date of Retirement, Subscriber can avail the option of complete Withdrawal.
Upon Death: At least 80% of the accumulated pension wealth of the Subscriber has to be utilized for purchase of an Annuity providing for a monthly pension to the Spouse and the balance is paid as lump sum to the nominee/legal heir. In case the total corpus in the account is less than or equal to Rs. 2 lakh as on the Date of Death of the Subscriber (Government sector), the nominee/legal heir can avail the option of complete Withdrawal. Further, if a family member opts for family pension, as per the Regulations, all the accumulated pension wealth shall be transferred to the bank account of the Nodal Office for further settlement as per Government directives.
Pre-mature Exit: At least 80% of the accumulated pension wealth of the Subscriber has to be utilized for purchase of an Annuity providing the monthly pension to the Subscriber and the balance is paid as a lump sum to the Subscriber. In case the total corpus in the account is less than or equal to Rs. 1 lakh as on the Date of Resignation, the Subscriber can avail the option of complete Withdrawal.
Online “Withdrawal Processing” by Subscriber in NPS:
What options for exit from NPS are available for Subscriber at the time of Superannuation/at the age of 60?
A subscriber can decide to remain invested in NPS (Up to 70 years) or exit from NPS. Following options are available to NPS Subscribers:
Continuation of NPS account: Subscriber can continue to contribute to NPS account beyond Retirement (Up to 70 years) and avail additional tax benefit on the contribution…Read more>>
Source:-techiyogiz
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