NPS account.<\/a> Each subscriber can exercise exit options independently for each account, ensuring consistent treatment across all schemes, including government, corporate, NPS-Lite, and Swavalamban.<\/p>\nDefinitions of exit and deferment<\/p>\n
\u201cExit\u201d is defined as the closure of an individual pension account, which can occur on retirement, superannuation, voluntary premature exit, or death.<\/p>\n
\u201cDeferment\u201d allows subscribers to postpone lump-sum withdrawals or annuity purchases, extending the option to remain in the system up to age 85.<\/p>\n
Exit rules for government and non-government subscribers<\/p>\n
Government and non-government subscribers now follow separate frameworks:
\n<\/p>\n
\n \tGovernment subscribers can withdraw savings at retirement, superannuation, or in case of disability, subject to prescribed limits.
\n \tNon-government subscribers \u2014 including corporate and voluntary all-citizen participants \u2014 follow rules aligned with their subscriber category.
\n
\nWithdrawal provisions for government subscribers
\n \tUp to \u20b98 lakh: Full lump-sum withdrawal allowed.
\n \t\u20b98\u201312 lakh: Up to \u20b96 lakh may be withdrawn as a lump sum; the remainder must be used for annuity purchase or phased withdrawals.
\n \tAbove \u20b912 lakh: Maximum 60% as lump sum; at least 40% must be used to buy an annuity.
\n
\nSubscribers retain the option to defer annuity purchase or withdrawals, enabling continued participation in NPS beyond retirement.<\/p>\n
Premature exit and annuity requirements<\/p>\n
Voluntary exits before retirement or the minimum 15-year subscription require at least 80% of the corpus to be used for annuity, with a limited portion (generally 20% or less) available for lump-sum withdrawal.<\/p>\n
\nDeath of a subscriber<\/p>\n
Nominees or legal heirs can claim the accumulated corpus in lump sum for smaller savings. For larger amounts, part of the corpus may be allocated to an annuity, with the remainder disbursed in lump sum or phased payments.<\/p>\n
The amendments clarify the role of nominees and legal heirs, replacing earlier references to \u201cfamily members.\u201d<\/p>\n
Missing subscribers and interim relief<\/p>\n
If a subscriber is legally presumed dead, nominees may receive 20% of the corpus as interim relief. The remaining 80% is disbursed only after legal confirmation under the Bharatiya Sakshya Adhiniyam, 2023. Interim payments are adjusted if the subscriber is later found alive.<\/p>\n
Withdrawal on cessation of Indian citizenship<\/p>\n
Subscribers who renounce Indian citizenship can now close their NPS accounts and withdraw the full corpus.<\/p>\n
Partial withdrawals<\/p>\n
Partial withdrawals remain capped at 25% of the subscriber\u2019s contributions and can be used for purposes such as loan repayment. These withdrawals are permitted even after retirement, subject to frequency limits.<\/p>\n
Loans against NPS accounts<\/p>\n
Subscribers can now pledge their NPS accounts to secure loans from regulated financial institutions, within limits prescribed by PFRDA, without compromising the retirement corpus.<\/p>\n
NPS-Lite and Swavalamban subscribers<\/p>\n
Full withdrawal is allowed for accumulations up to \u20b92 lakh. For higher balances, a portion must be used to purchase an annuity, increasing the previous limit of \u20b91 lakh.<\/p>\n","protected":false},"excerpt":{"rendered":"The Pension Fund Regulatory and Development Authority (PFRDA) has issued updated rules for exits and withdrawals under the…\n","protected":false},"author":2,"featured_media":189037,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[138,246,118536,111,139,118542,118539,118535,118540,118541,118538,69,244,245,118537],"class_list":{"0":"post-189036","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-national-pension-system-withdrawal","11":"tag-new-zealand","12":"tag-newzealand","13":"tag-nps-account-closure","14":"tag-nps-annuity-purchase","15":"tag-nps-exit-rules","16":"tag-nps-partial-withdrawal","17":"tag-nps-premature-exit","18":"tag-nps-withdrawal-process","19":"tag-nz","20":"tag-personal-finance","21":"tag-personalfinance","22":"tag-pfrda-regulations"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/189036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=189036"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/189036\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/189037"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=189036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=189036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=189036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}