National Pension Scheme: Good News! Rules Tweaked, You Can Now Withdraw Money if…

National Pension Scheme: The Pension Fund Regulatory and Development Authority (PFRDA) is set to implement new guidelines for National Pension System (NPS) withdrawals, effective from February 1, 2024. These updated rules bring a host of benefits, allowing subscribers to make partial withdrawals, capped at 25% of their individual pension account contributions (excluding employer contributions).

Who Benefits from the New Rules?

Under the new rules, subscribers can make partial withdrawals for the following specific expenses and purposes:

Higher Education Expenses

Subscribers' children, including legally adopted children, are poised to benefit from the provision for partial withdrawals to cover higher education costs.

Marriage Expenses

For subscribers with children, including legally adopted children, the new rules offer financial relief by allowing partial withdrawals to meet marriage-related expenses.

Residential Property Aspirations

Subscribers planning to purchase or construct a residential house or flat in their name or jointly with their legally wedded spouse can make use of this withdrawal option. Notably, this does not apply if the subscriber already owns a residential property, excluding ancestral holdings.

Medical Treatment Coverage

The enhanced guidelines provide critical financial support for medical treatments, encompassing specified illnesses such as cancer, kidney failure, primary pulmonary arterial hypertension, multiple sclerosis, major organ transplant, and even Covid-19.

Disability-Related Expenses

Subscribers facing disability or incapacitation can access funds to cover medical and incidental expenses arising from their condition.

Skill Development and Self-Development

The rules extend support for skill development, re-skilling, and various self-development activities, acknowledging the importance of continuous learning and personal growth.

Entrepreneurial Ventures

Aspiring entrepreneurs among NPS subscribers can tap into this withdrawal option to fund the establishment of their own ventures or start-ups.

How to Apply for Partial Withdrawal

To make use of these benefits, subscribers need to follow a straightforward application process:

• Submit a withdrawal request to the central recordkeeping agency (CRA) through the respective government nodal office or point of presence.
• Include a self-declaration explaining the purpose behind the withdrawal.
• The CRA will process the request upon successful verification of the subscriber's bank account.

Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER.