Withdrawal Rules for NPS

Do you want to withdraw fund from NPS before maturity? Well, when it comes to close the NPS account, there are few rules and regulation that need to follow. Whether withdrawing money after resignation, or after retirement or even after death, there are guidelines that need to follow. So let’s find what the circumstances under which money can be withdrawn. We can divide the withdrawal rules into three parts:

  • Normal Retirement
  • Death
  • Before Retirement

Withdrawal Rules and Regulations

Let’s explore bit more in detail.

How to withdraw under Normal Retirement
If you are retired after 60 year of the age then you are eligible to withdraw 60% of the total amount from NPS account. While rest 40% of the amount should be uses to buying monthly pension, and therefore this amount can’t be withdrawn at once.

Please note that, if the total amount of NPS is less than 2 Lakh at the date of your retirement, then you can withdraw the whole amount without any restriction.

In case of Death
In case the death of NPS holder, the total 100% amount will be credited to the nominee. In case nominee is not registered, then the amount will be given to the legal entitled. Please note that there won’t be any pension scheme in such event.

Premature Withdrawal
If you want to close the NPS before the retirement times, then you are entitle to withdraw only 20% of the whole amount. Whether you resign from the job, or just want to close the NPS account, only 20% of the amount can be withdrawal. Rest 80% of the amount will be uses to buy an annuity that will be giving monthly pension to the NPS holder.

Withdrawal Form

There are total 9 different types of form available as shown below:

Event Govt. Corporate Swavalamban
Normal Retirement 101-GS Form 301 501
Death 103-GP Form 303 503
Before Retirement 102-GP Form 302 502

You can also request for NPS withdrawal form by sending an email to below mentioned ID:

Documents required for NPS Withdrawal

Once you downloaded the Withdrawal form then you need to filled it up properly and submit along with below mentioned supported documents. Note that, if required documents are not provided the NPS fund might be on kept on hold.

1) A Covering Letter is required from the associated POP/POP-SP.

2) One advanced stamped receipt along with your signature.

3) Submit original PRAN Card. If you have lost the PRAN Card then an affidavit will be required for the same.

4) Complete KYC document that should contain your complete address and ID proof and this must be attested by the mapped POP/ POP-SP.

5) Last but not the least is the Cancelled Cheque. This cheque should belong to your Bank saving account in which NPS withdrawal payment will be send.