Partial NPS Withdrawal Rules – Procedural Guidelines
The National Pension System (NPS) has specific rules and orders regarding withdrawal, including partial withdrawal. The guidelines for procedural steps to take for such partial withdrawals are outlined by the Pension Fund Regulatory and Development Authority (PFRDA), which oversees the NPS. It’s important to understand these guidelines thoroughly before making any withdrawals to avoid any complications or penalties.
GOVERNMENT OF INDIA (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRALAY)
(RAILWAY BOARD)
No.2016/F(E)III/1(1)/3
New Delhi, Dated: 24.04.2020.
The GMs/Principal Financial Advisers,
All Zonal Railways/Production Units etc.,
(As per mailing list)
Subject: Partial Withdrawals from National Pension System (NPS) for different purpose and procedural guidelines.
A copy each of the Pension Fund Regulatory and Development Authority (PFRDA)’s circular No.PFRD/2020/7/REG-EXIT/1 dated 09.04.2020 and No PFRDA/2018/47/Reg-Exit/4 dated 24.05.2018 on partial withdrawals under National Pension System for different purposes, and No.PFRDA/2018/40/Exit. dated 10.01.2018 & No PFRDA:2016/7/Exit/2 dated 21.03.2016 providing procedural guidelines for partial withdrawals, are enclosed for information and compliance. The instructions contained in these circulars shall apply mutatis mutandis on Railways also.
2. The instructions on Pension Fund Regulatory and Development Authority (Exits and withdrawals under the National Pension System) Regulations, 2015 and amendments thereto mentioned in the above circulars have been adopted on Railways vide letter of even number dated 27 05.2016 & 23.04.2020
sd/-
(G. Priya Sudarsani)
Director, Finance (Estt.)
Railway Board
Click to view the Railway Order
National Pension System Latest Updates:
- NPS to OPS Latest News – Railway employees Selected 1.1.2004 but Joined after 1.1.2004 – NFIR March 19, 2020
- Withdrawal National Pension System (NPS) to CG Employees Recruited On or After 1.1.2004 March 10, 2020
- NPS to OPS Latest News – Amendment in CCS (Pension) Rules 1972 – DoPPW Order Dated 17 February 2020 February 18, 2020
- Benefit of Gratuity to CG Employees Covered under National Pension System (NPS) February 17, 2020
- Overseas Citizenship (OCI) Can Investment in NPS October 31, 2019
- NPS Vs GPF – General Provident Fund Facility to National Pension Scheme Governed Employees September 30, 2019
- NPS and OPS: National Pension System and Old Pension Scheme September 25, 2019
Can I mix partial withdrawals with lump sum withdrawals from NPS?
No, partial withdrawals cannot be mixed with lump sum withdrawals from NPS. Lump sum withdrawals are allowed only at the time of retirement or superannuation.
Are there any tax implications on partial withdrawals from NPS?
As per the current income tax laws in India, partial withdrawals from NPS are exempt from income tax.
What happens to the remaining funds in my NPS account after a partial withdrawal?
After a partial withdrawal, the remaining funds in the NPS account continue to stay invested and accumulate until the subscriber reaches retirement age or chooses to opt out of the NPS.
How can I make a partial withdrawal from NPS?
To make a partial withdrawal from NPS, subscribers need to submit a duly filled withdrawal form along with the required supporting documents to their respective NPS service provider.
Are there any restrictions on the number of partial withdrawals allowed from NPS?
NPS subscribers are allowed to make only 3 partial withdrawals during the entire tenure of their NPS account.
How much can I withdraw as a partial withdrawal from NPS?
NPS subscribers can withdraw up to a maximum of 25% of their own contributions towards NPS, excluding contributions made by the employer, after completing the minimum contribution period.
What are the conditions for partial withdrawal from NPS?
To be eligible for partial withdrawal from NPS, individuals must have completed a minimum of 3 years of contribution and have specific purposes like higher education, marriage, purchase/construction of a house, or treatment of specified illnesses.
What are the procedural guidelines for partial withdrawal from NPS?
The procedural guidelines for partial withdrawal from NPS include meeting certain conditions, such as completing a minimum period of contribution and having a specific purpose for withdrawal.
What is a partial withdrawal from NPS?
Partial withdrawal refers to the option for NPS subscribers to withdraw a portion of the accumulated funds in their NPS account for certain specified needs.
What is NPS?
NPS stands for National Pension System, a government-sponsored pension scheme in India.
Leave a Reply