NPS i.e. National Pension System is a government scheme that has been designed for retirement. Through this scheme, investors can arrange for retirement funds as well as pensions for themselves in old age. Out of whatever amount you deposit in it, 60 percent of the amount is given to you as a retirement fund, while 40 percent has to be bought for an annuity, which gives you a pension. NPS is a long-term investment, so if the investor needs money in between, can a partial withdrawal be made from it? Know here what is the rule regarding this.

You can make a partial withdrawal after 3 years.

According to the rule, if you want to make a partial withdrawal without closing the NPS account before the age of 60 or before retiring, then you can do so, but for this, your account should be at least three years old. You can withdraw a maximum of 3 times during the entire period of your NPS account. PFRDA changed the rules regarding NPS partial withdrawal in February 2024. According to the changed rules, NPS account holders can withdraw up to 25% of the amount from the personal pension account excluding the employer contribution.

Withdrawal can be made in these situations.
If you need money for your children's higher education, then you can make a partial withdrawal from NPS.

Account holders can also make a partial withdrawal of up to 25% for the marriage of children.

Partial withdrawal can also be made for buying a house, home loan repayment, etc., but if you or your spouse already have a house in your name, then you will not be able to avail this facility to buy another house.

Money can be withdrawn from the NPS account for hospitalization and treatment expenses during serious illnesses.

Money can be withdrawn in case of becoming medically disabled or disabled due to an accident.

Money can be withdrawn for hospitalization or treatment in case of a serious illness.

You can withdraw money to start any kind of business, for startup, for skill development, or for any course.

How can you withdraw money?

To withdraw 25% or less of the amount under NPS, first, you have to apply to any government nodal agency of NPS. A self declaration has to be given with this application as to for what purpose you are withdrawing the amount. After this, the application has to be submitted to the Central Recordkeeping Agency (CRA). Then the agency will process the application after verification. If the subscriber is ill, then a family member or nominee can make this request on his behalf.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.