The Pension Fund Regulatory Development
Authority (PFRDA) has relaxed the norms for partial withdrawal under the
National Pension Scheme (NPS). In accordance with the PFRDA (Exits and
Withdrawals under the National Pension System) (First Amendment)
Regulations 2017, the subscriber ought to be subscribed to the National
Pension System, at least for a period of three years from the date of
his or her joining to such system, to be eligible to make partial
withdrawals, under specific circumstances as specified in such
regulations.
The NPS subscribers can withdraw after
three years from the date of joining the system and a maximum of three
times during the entire tenure of subscription under NPS, but the
partial withdrawal is linked with contributions made by the subscriber.
The subscriber shall be permitted to withdraw accumulations not
exceeding twenty-five per cent of the contributions made by him or her
and standing to his or her credit in his or her individual pension
account, as on the date of application for withdrawal.
Earlier the subscriber under NPS was
permitted to withdraw accumulations not exceeding twenty-five per cent
of the contributions made by him or her after 10 years from the date of
his or her joining the system, and a maximum of three times during the
entire tenure of subscription under NPS.