NPS Withdrawal: There is a big change in the rules for withdrawing money from NPS account, know now otherwise you will be worried.
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NPS Withdrawal: If you also invest in the National Pension Scheme, then this is very useful news for you. Pension Fund Regulatory and Development Authority (PFRDA) has made a major change in the process of withdrawing money from the account. The authority has issued a notification for this. According to the notification which will come into effect from February 1, any NPS account holder will now be able to withdraw only 25 percent of the amount deposited in his account. Also, it is possible to withdraw money from the account only a maximum of three times. Also, instant bank account verification has been made mandatory for crediting NPS funds into the customer’s bank account at the time of withdrawal. Also, now the verification of bank account will be done through penny drop method.
Penny drop verification will be necessary
According to the notification from PFRDA, verification as per penny-drop method will be required to process the requests for exit or withdrawal from the scheme and to make amendments in the bank account details of the subscribers. Now no change will be possible without verification. If the penny-drop verification of the NPS holder fails, the CRA will have to send this information to the account holder’s mobile number and e-mail ID. For this they will have to tell that they should meet their nodal officer and POP. Along with this, CRA will also have to inform its nodal officer and POP.
When can you withdraw from NPS?
Some standards have been set for withdrawing money from NPS. Only for them, you are allowed to withdraw money from your pension account.
1. For children’s education or marriage.
2. To buy a house.
3. In case of medical emergency.
4. In case of disability or disability in case of accident
5. For the amount of money spent on skill development.
6. To start a startup or business.
What is National Pension Scheme
The National Pension Scheme is an individual pension scheme managed by the Government of India. The main objective of this pension scheme is to provide an opportunity to Indian citizens to invest under various schemes and benefit from the invested capital, so as to make them self-reliant for a good lifestyle. The scheme provides a wide range of options to encourage free and positive investment, and suggests individuals to deposit money under various financial prosperity schemes as investments. The main objective of NPS is to provide an opportunity to individuals to invest as a safe and prosperous scheme so that they can remain self-reliant during their old age.
Main features of National Pension System
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Regular and non-regular schemes: NPS has regular schemes and non-regular schemes, which give individuals the option to invest according to different schemes.
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Flexibility: NPS gives individuals the opportunity to invest in various investment options such as attractive pension funds (APF), equity shares, and government sector schemes.
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Individual and company contribution: There is an option to invest in NPS in the form of individual and company contribution.
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Secure and corporate: NPS is a secure and corporate pension scheme in which investments are made as per prescribed plans.
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Freedom of portfolio management: In NPS individuals also have the option to manage their portfolio themselves.
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