NPS Withdrawal Rules: Changes in many financial rules are seen on the first of every month. The month of February will start in a few days. This month is very important financially. The interim budget will be presented on 1 February. There will also be changes in the rules of NPS. Let us know in this article what will be the change in NPS rules next month?
NPS Withdrawal Rules: The rules for withdrawing money from NPS will change from February 1, 2024. This rule has been changed by the Pension Fund Regulatory and Development Authority. PFRDA has issued a notification regarding this. According to this notification, from February 1, 2024, the account holder will not be allowed to withdraw more than 25 percent of the deposit amount.
At present this rule has not been implemented. This rule will come into effect from next month.
When can you withdraw money from NPS account?
The National Pension System provides the facility to withdraw money in certain circumstances. In this situation you can withdraw money.
- Account holders can withdraw money from NPS account to buy a house.
- The account holder can apply for withdrawal for children’s education or marriage.
- Money can be withdrawn even if there is a medical emergency.
- Money withdrawal facility is also available for starting a new business or startup.
- If the account holder can withdraw money to meet sudden expenses due to disability.
- You can also withdraw money from the account for skill development expenses.
These are the conditions
- Money can be withdrawn from the account only if the account is 3 years old.
- You cannot withdraw more than one-fourth of the total deposit amount.
- The account holder can withdraw money only 3 times.
How to withdraw money from NPS account
- To withdraw from NPS account, a withdrawal request has to be filed.
- The account holder will have to give the reason for withdrawing the money. Apart from this they will have to submit some documents.
- After submitting the withdrawal request, the Central Recordkeeping Agency processes this application.
- The money gets credited to the account after a few days of the withdrawal request being processed.
