National Pension System (NPS); NPS Online Withdrawal Process

Are you a National Pension System (NPS) subscriber, want to open an account in NPS, and want to know about the NPS online withdrawal process, eligibility, Benefits, etc? So we have explained here in this article with complete information to follow.

National Pension System (NPS)

The National Pension System (NPS) is a voluntary contribution retirement savings plan. It offers exclusive Tax Benefits for investments up to Rs. 50,000 under Sec 80CCD(1B).

The Pension Fund Regulatory and Development Authority (PFRDA) controls the NPS and is regularly tracked and monitored for performance.

NPS offers a flexible range of investments.

NPS offers Tier-I and Tier-II accounts with two investment options, i.e., Active choice and Auto choice.

In Active choice, the subscriber decides the allocation whereas the subscribers receive full assistance in choosing how to allocate their assets.

Prerequisite Before Online NPS Withdrawal

At the time of initiating the superannuation exit request in CRA, the claim ID will get auto-populated in the online exit request.

In case of premature exit, the subscriber needs to raise an online grievance in CRA for the generation of the Claim ID by accessing the CRA system with PRAN as a user ID and password. CRA will generate a claim ID online in the CRA system to inform the subscriber.

The subscribers who have joined the NPS on or after completing the age of 60 years, a Claim ID is not required. They can directly initiate the exit request in the CRA system only after the completion of 5 years in NPS.

NPS Online Withdrawal Process, Step by Step Through Self-Authorization

To initiate an NPS Online withdrawal process request, subscribers need to log in to their Pension Account with a user ID/PRAN and password on the NSDL site. (Superannuation and Premature exit)

• After successful login, go to the continuation and withdrawal menu.
• Then select the exit from the NPS option. (Superannuation or Premature)
• Then select the Self Authorization option to proceed.
• Subscriber needs to complete e-KYC any one option i.e. Online Aadhar/ Virtual ID/Offline KYC/CKYC/PAN.
• The details such as complete name and date of birth with Aadhar need to be verified with the details registered in CRA.
• After the successful updation of KYC details, the subscriber can initiate the exit request.
• Subscriber needs to select the Exit from NPS option and self Authorization option again.
• Subscfriber’s registered details such as PRAN, contact details, bank details, nomination details, etc. will be generated automatically.
• Except for Nominee details, the subscriber can not edit other details.
• Subscriber needs to capture the details such as limp sum withdrawal percentage, annuity percentage, Annuity service provider, annuity scheme, etc.
• Subscriber’s Bank details will be verified through online Bank Account Verification during exit request initiation.
• Subscribers must upload scanned copies of all the required documents such as KYC documents (Identity & Address proof), copies of bank proof, copies of PAN, and copies of PRAN card/e-PRAN, etc.
• Subscribers must submit the request using Aadhar eSign. An OTP will be generated on the Aadhar registered mobile number which needs to be submitted.
• On successful eSign of the exit request by the eNPS subscriber, the request will get executed in the CRA system.

Note: The above-mentioned process will be applicable if the NPS Corpus of the subscriber is less than Rs. 10 lakh.

What Are The Types Of NPS Withdrawal Forms?

There are different forms available that depend on the type of withdrawal.

• Superannuation Withdrawal
• Premature Withdrawal
• Death

Superannuation Withdrawal

A subscriber can claim 100% withdrawal if their accumulated corpus is less than Rs. 5 lakh at retirement or they turn 60.

Premature Withdrawal

If the total accumulated corpus is less than or equal to Rs. 2.5 lakh, the subscriber can withdraw the total amount.

Death

In case of the death of the subscriber, the entire accumulated pension wealth i.e. 100% NPS corpus will be paid to the nominee or legal heir.

What Are The Documents Required for NPS Withdrawal

The mentioned documents below are required to be submitted along with the withdrawal form for superannuation and pre-mature exit.

• Original PRAN card.
• Advanced stamped receipt with cross-signed on the Revenue stamp by the subscriber.
• KYC documents. (Address and photo ID proof)
• Canceled cheques or Bank certificates or Bank passbooks having the subscriber’s name, photograph, Bank Account Number, and IFS code are required to submit.
• Request cum Undertaking form if eligible for complete withdrawal.

How to Check the NPS Withdrawal Status Online?

Subscribers can check the withdrawal status with the following below-mentioned process:

• Subscribers can check the ‘Limited Access View’ (Pre-login) option that is available on the home page of the CRA website.
• Subscribers may check the status under the menu ‘Exit Withdrawal Request, then Withdrawal Request Status View’ option under the NPS account login.

What is Partial Withdrawal in NPS?

NPS subscribers can withdraw a certain amount of their contribution which is considered as a partial withdrawal under NPS. However, there are some conditions for partial withdrawal from NPS.

What Are The Conditions for NPS Partial Withdrawal?

Some conditions need to be followed for partial withdrawal in NPS.

• Subscriber should have been in the NPS for 3 years from the date of his/her joining. ( Applicable for Govt. and Corporate subscribers)
• The subscribers are allowed to withdraw only 3 times during the entire subscription.
• The subscriber can withdraw only a maximum of 25% of their contribution.

What are the Reasons Partial Withdrawal comes under?

A subscriber can avail partial withdrawal for only below below-mentioned specific reasons.

• Can avail for Higher Education of Children.
• Can avail for the marriage of children.
• Can avail for the purchase/construction of residential house.
• Can avail for the treatment of specified illness for the subscriber, spouse, and children.
• To meet medical expenses arising from disability.
• Can avail for own skill development.
• Can avail for any business or startup.

What is the Process for Partial Withdrawal?

Partial withdrawal requests can be initiated online by the subscriber himself or the subscriber can submit the physical partial withdrawal form (601-PW) along with bank account proof to his/her associated Nodal Office for the partial withdrawal.

The nodal office will verify the documents and initiate a partial withdrawal request in the CRA system through One User ID and authorize the request through another user ID.

On successful authorization of request by the Nodal Office, a partial amount will be transferred to the subscriber’s bank account within the given timeline.

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