NPS withdrawal rule changing from 1st January 2023: Here is all you want to know

PFRDA has made it mandatory for all the Government sector subscribers (Central/ State Govt & Central/State Autonomous Bodies) to submit their requests through their associated nodal offices.

New Delhi: Pension Fund Regulatory and Development Authority (PFRDA) has announced new rules for partial withdrawal for NPS Subscribers that will come into effect from 1st January 2023.

PFRDA has issued a circular stating "partial withdrawals under NPS through self-declaration for the benefit of subscribers as a special dispensation to cope with the Covid pandemic in order to protect the subscribers’ interest and ease the burden of nodal officers including POPs from verification and authorization. The circular also provided for the option of submission of the partial withdrawal requests by the subscribers through their nodal office/POPs as per the prevalent practice."

The pension fund regulator also said that amidst abating of the pandemic-related difficulties & relaxation of lock down restrictions, it has been decided to make it mandatory for all the Government sector subscribers (Central/ State Govt & Central/State Autonomous Bodies) to submit their requests through their associated nodal offices.

However, the subscribers belonging to the voluntary segment of the NPS may continue to use the process as mentioned in the cited circular, it added.