How to make partial withdrawal from NPS account

The primary objective of the National Pension System (NPS) is to build a retirement corpus, but subscribers may need funds before this. The NPS has a provision for partial withdrawal under specific conditions without requiring a closure of account.

Eligibility criterion
To be eligible for a partial withdrawal, the subscriber should have been enrolled in the NPS for a minimum of three years.


Limit & frequency
The withdrawal limit is 25% of the subscriber’s contribution. They can make up to three partial withdrawals, with a five-year gap, throughout the life of their NPS account.

Permissible reasons

• Education or marriage expenses for children.
• Buying/construction of first house.
• Medical treatment for the subscriber or immediate family.
• Pursuing some skill development or self-improvement activities as approved by the PFRDA.
• Starting an entrepreneurial venture or startup in line with the PFRDA regulations.

Medical conditions
Eligible conditions include cancer, kidney failure, heart surgery, accident, etc. Here, the condition of five-year gap between withdrawals does not apply.

Process
A withdrawal request, with a self-declaration of the purpose and supporting documentation, must be submitted to the point of presence (PoP), nodal office, or associated entities. In case of illness, a family member can also submit the request.

Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.