If you wish to withdraw your accumulated wealth in NPS before you turn 60 years old or upon reaching superannuation, you can make partial withdrawal from your NPS account without closing it.
Eligibility for Partial Withdrawal
You are eligible for making a partial withdrawal request only if you have been an NPS subscriber for at least 3 years (from the date of your joining NPS).
Frequency and Limits of Partial Withdrawal
- You can withdraw up to a maximum of 3 times during the entire tenure of your NPS account.
- You can withdraw up to 25% of the contribution in NPS at any time, excluding those made by your employer, if any.
Also, you can withdraw only 25% of the contributions made by you between two partial withdrawals.
Circumstances for Partial Withdrawal
The purposes for which you can make a partial withdrawal request include:
(a). Higher education of the subscriber's children, including a legally adopted child.
(b). Marriage of the subscriber's children, including a legally adopted child.
(c). Purchase or construction of a residential house or flat in the subscriber's own name or in joint name with their legally wedded spouse. However, if the subscriber already owns a residential house or flat (other than ancestral property), no withdrawal shall be permitted.
(d). Treatment of specified illnesses, including hospitalization and treatment expenses for diseases such as cancer, kidney failure (End Stage Renal Failure), primary pulmonary arterial hypertension, multiple sclerosis, major organ transplant, coronary artery bypass graft, aorta graft surgery, heart valve surgery, stroke, myocardial infarction, coma, total blindness, paralysis, accidents of serious/life-threatening nature and Covid-19.
(e). Medical and incidental expenses arising from the disability or incapacitation suffered by the subscriber.
(f). Expenses incurred by the subscriber for skill development/re-skilling or any other self-development activities.
(g). Expenses incurred by the subscriber for the establishment of her/his own venture or any start-ups.
Withdrawal Process
You can submit a withdrawal request along with relevant documents to the POP / Nodal Office / for processing your withdrawal claim.
However, if you are suffering from any illness as specified above, the withdrawal request can be submitted by any of your family members.
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Withdrawal from Tier-II account
The rules for withdrawing from a Tier-II account are different from those for a Tier-I account. As per the extant regulations, a subscriber having a valid and active Tier-II account can withdraw the accumulated wealth either in full or part, at any time by applying for such withdrawal. There shall be no limit on such withdrawals till the account has sufficient amount of accumulated pension wealth to take care of the applicable charges and the withdrawal amount. However, Tier II account will automatically stand closed upon the closure of Tier I account.
Withdrawal from Tier-II Tax Saver Scheme
Withdrawal from Tier-II Tax Saver Scheme for Central Government Employees is not allowed before the completion of lock-in period specified under the said scheme except in case of death.
View Exits & Withdrawals Regulations