New Delhi: Relaxing norms, Pension Fund Regulatory and Development Authority (PFRDA) has permitted partial withdrawal under the National Pension System (NPS) for purchase.
NPS is government's flagship social security programme. Any Indian citizen, resident or non-resident, between the age of 60- 65 years, can join NPS and continue up to the age of 70 years in NPS.
"A subscriber on the date of submission of the withdrawal form, shall be permitted to withdraw not exceeding 25 percent of the contributions made by such subscriber to his individual pension account" for specified purposes, a PFRDA circular said.
Here are the conditions under which NPS subscribers can partially withdraw their contribution.
- NPS subscribers who have contributed for three years can now withdraw up to 25 percent of the corpus for meeting specified expenses.
- The withdrawal will be permitted only three times during the tenure of the subscription.
- The specified purposes for which funds could be withdrawn from the NPS account, include higher education of children or their marriage.
- The withdrawal will be also permitted for purchase/ construction of residential house or flat.
- In case the subscriber already owns either individually or in the joint name a residential house or a flat, other than ancestral property, no withdrawal will be permitted.
- Funds can also be withdrawan for treatment of illnesses like cancer, kidney failure, coronary artery bypass graft, heart valve surgery and paralysis.