The norms for partial withdrawal under the National Pension Scheme (NPS) have been relaxed by the Pension Fund Regulatory Development Authority (PFRDA). PFRDA specified that a subscriber needs to remain subscribed to the NPS for at least three years from the joining date to be eligible for making a partial withdrawal as per the regulation.
PFRDA has allowed NPS subscribers to make partial withdrawals up to maximum three times during the full tenure of subscription with NPS. However, the regulator has specified that the partial withdrawal is linked with the subscription contributions made by the subscriber.
Moreover, the regulator states that the subscriber cannot withdraw accumulations exceeding 25% of the contributions made to the NPS account as on withdrawal date. Earlier, a subscriber could do it after 10 years from the date of joining NPS for a maximum of three times during the entire tenure of subscription under National Pension Scheme.
Financial security and regular income source are two of the major strengths of NPS. Therefore, you can lead a peaceful life after retirement without actually changing much of your standard of living.
NPS also provides you with the opportunity to invest and accumulate savings and get lump sums as regular income through annuity plans on retirement.
How can one start with NPS?
National Pension Scheme is distributed through authorized entities called Points of Presence (POPs). One will have to open an NPS account online with a POP to invest in NPS. The POP will provide the subscriber with all the help with regards to account opening.
One can enroll online as an individual subscriber with Aadhar using the following steps:
2) Select Applicant Type: Individual Subscriber, Status of Applicant: Resident of India, and Select Account Type as per your preference(Tier 1 – is Pension Account & Mandatory) (Tier 2 – is Saving Account & Optional), Enter Aadhaar number and OTP
3) Next Fill all your details and make your initial contribution online. Please make a note of Acknowledgement Number – given at the time of registration; with the help of acknowledgement number, the subscriber can check the status of application.
4) Upon successful registration, the subscriber will receive a welcome kit within 10 working days. The welcome kit will contain: PRAN card (Permanent Retirement Account Number is a unique registration number allotted to each subscriber in the CRA system), subscriber information, and product information.
National Pension Scheme is a great product with the capability of providing long-term wealth and its annuity option gives subscribers piece of mind with regular flow of income after retirement. Don’t forget to save tax on investment of additional Rs. 50,000.
So, start your NPS Now: https://accountopening.investmentz.com/AcmiilService/Karvy/Registration