Big Announcement! PFRDA gives this facility to National Pension System (NPS) subscribers

Finance

Alert! The Pension Fund Regulatory & Development Authority (PFRDA) has further made the partial withdrawal easier for the National Pension System (NPS) account holders. NPS Subscribers can now ‘Self Declare’ to avail NPS Partial withdrawal and receive the amount on 5th day in their Bank Account. The pension regulator body has already issued the circular in this regard on 14th January 2020.

Informing about the decision in regard to NPS account withdrawal, the PFRDA said, “PFRDA had taken this decision to expedite the process of partial withdrawal based on self-declaration and ensure faster payment of partially withdrawn amounts into the Subscribers’ bank account. The partial withdrawal requests received online shall be directly processed in the Central Record Keeping Agency (CRA) system.”

NPS account withdrawal: How to furnish self declaration

To furnish self declaration during NPS partial withdrawal, the PFRDA proforma is, “I submit the request for partial withdrawal and the amount thus withdrawn shall be utilized for the purpose of declared reasons as specified by PFRDA exit regulations.  I am fully responsible and accountable to spend the amount thus withdrawn for the stated reason.”

While on-line withdrawal facility is being allowed, the existing off-line withdrawal facility shall continue and the Subscribers shall have the option for submitting offline requests also to the associated POPs/Nodal officers.

NPS account withdrawal: The process of partial withdrawal based on self-declaration is provided below:

1] NPS subscribers can submit the partial withdrawal request online/off-line to CRA/Nodal Office/PoPs, as the case may be;
2] For online withdrawal-Login to CRA system using login credentials;
3] Select Partial Withdrawal and the eligible amount of partial withdrawal displayed; and
4] Select the reasons for partial withdrawal in drop down option.

NPS Subscribers after 3 years of joining the scheme are eligible for partial withdrawal of 25% of their self-contribution to meet their specific needs as permitted by PFRDA.

As of now, the eligible Subscribers need to submit their application for partial withdrawal to the respective nodal officers/Points of Presence (POPs) along with the supporting documents to substantiate the reasons for their partial withdrawals.

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