Business

IIE Digital Desk: The Pension Fund Regulatory and Development Authority has introduced new rules for withdrawals of funds from NPS accounts. Beginning the 1st of February, subscribers will not be able to withdraw more than 25% of their contributions. The withdrawal money also excludes Employers' contribution.

Partial withdrawal eligibility

Subscribers must have been a member of this scheme for a minimum of three years to avail partial withdrawal.

NPS rules also allow subscribers to withdraw money only 3 times throughout their subscription period. For subsequent withdrawals, only incremental contributions made by the subscriber from the date of the previous partial withdrawal shall be allowed.

As per new rules, NPS partial Withdrawal is permitted for

Higher education expenses for the subscriber's children. This is also applicable for legally adopted children.

Marriage expenses for the subscriber's children. Also applicable for legally adopted children.

Purchase or construction of a residential house or flat in the subscriber's name or jointly owned.

Medical expenses for specified illnesses, such as cancer, kidney failure, primary pulmonary arterial hypertension, multiple sclerosis, major organ transplant, coronary artery bypass graft, and others.

Medical and incidental expenses arising from the disability or incapacitation suffered by the subscriber.

Expenses for skill development or re-skilling.

Expenses incurred by the subscriber for establishing their venture or any start-up.

In case a subscriber is ill, a family member can make a withdrawal request. The Point of Presence or Government Nodal Office will identify the recipient once the request is made.