NPS partial withdrawal latest rules: Who are eligible, how much can you withdraw, when can you withdraw

Partial withdrawal from NPS is allowed only after three years. So an NPS subscriber must complete three years from the date of joining the fund or the date of PRAN generation to be eligible to partially withdraw funds from NPS.

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An NPS subscriber can withdraw up to 25% of his or her contribution. For the government and corporate NPS subscribers, the withdrawal cannot be made from the portion of the corpus contributed by the employer. Further, the returns generated on the contribution are also not eligible for partial withdrawal.

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According to the Pension Fund Regulatory and Development Authority (PFRDA), partial withdrawal from NPS is allowed for the following purposes
i) Higher education of children
ii) Marriage of children
iii) For the purchase/construction of the first house.
iv) For treatment of specified illnesses for subscribers, spouses, and children.
v) To meet medical and incidental expenses arising out of the disability or incapacitation
suffered by the Subscriber
vi) For skill development/re-skilling or any other self-development activities
vii) For the establishment of own venture or any start-up (only for ‘All Citizens’ sector subscribers).

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Withdrawals from your NPS account are limited to a maximum of three times throughout the account’s tenure.

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There must be a gap of five years between the withdrawals. However, this condition of a gap does not apply in case the withdrawal is being made for the treatment of a specified illness. “For subsequent partial withdrawals, only incremental contributions made by the subscriber from the date of the previous partial withdrawal shall be allowed,” says PFRDA.

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