National Pension System -NPS Partial Withdrawal Rules
National pension system (NPS) is locked until the subscriber makes an exit from the scheme, there are some exceptions made from time to time to allow the subscribers to withdraw a part of the accumulated funds.
Currently, the withdrawal limit is 25% and can be made for a host of reasons that include critical illness, the marriage of children and the purchase/construction of the house. Recently, the pension fund regulator PFRDA allowed the NPS (National Pension System) subscribers to withdraw the money for purposes that include higher education and investment in new business. NPS is the government's flagship social security programme.
https://www.ndtv.com/business/national-pension-system-nps-withdrawal-rules-changed-how-to-make-nps-partial-withdrawal-eligibility-1847947
1. NPS withdrawal is allowed but only after 3 years of subscription. Subscribers are permitted to withdraw not exceeding 25% of the contributions made only by a subscriber.
2. For calculating the 25% limit of withdrawal, the contribution by the employer is not allowed.
3. The subscriber shall be allowed to withdraw only a maximum of three times during the entire tenure of subscription under the NPS. The request for withdrawal shall be submitted by the subscriber to the central record keeping agency or the NPS trust for processing through their nodal office.
