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NPS Lite subscribers do not need to contribute for 25 years, Premature Withdrawal approved with this condition

Now NPS Lite subscribers above the age of 40 years can get relief from the mandatory deposit rule for 25 years and withdraw their money if the amount in their account is less than Rs 1 lakh.

National Pension System (NPS) Lite Premature Exit Rule: The Pension Fund Regulatory and Development Authority (PFRDA) has given a big gift to the subscribers associated with the NPS Lite Swavalamban Scheme. PFRDA has changed the rules related to withdrawal from this scheme. Now if the amount in the account of NPS Lite subscribers is less than Rs 1 lakh and they are not eligible to migrate under Atal Pension Yojana (APY), then they can get relief from the mandatory deposit rule for 25 years and You can withdraw your money. Subscription can be started in APY only till the maximum age of 40 years, so NPS Lite Scheme subscriber above 40 years of age can withdraw it if there is less than one lakh rupees in the pension account. If the contribution of the government has also been included in their account, they can still withdraw their money. However, in such a situation, only the balance amount will be allowed to be withdrawn after deducting the government’s contribution from the total amount in the pension account.

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Calculation will be like this

According to the circular, how much amount can be withdrawn in the pension account under the Swavalamban scheme, for this, the government’s contribution will have to be withdrawn from it. PFRDA has explained this through an example. For example, there is a Swavalamban subscriber whose age is 43 years. If you can start subscription under APY only till the age of 40 years, then Swavalamban subscriber cannot go under APY scheme. If there is Rs 1.04 lakh in the Swalamban account, out of which the government’s share and returns are Rs 4500, then the subscriber can do premature withdrawal as the total capital will be less than Rs 1 lakh Rs 99500 (Rs 1.04 lakh – Rs 4.5 thousand).

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apply like this

For Premature Exit, NPS Lite Swavalamban Subscribers with a maximum balance of Rs 1 lakh can submit the Withdrawal Claim Form to the Associated POPs/Aggregators. According to the circular, the Central Record Keeping Agency (CRA) has been advised to communicate with eligible Swavalamban subscribers and POPs/aggregators regarding this. In the circular issued on July 2, 2021, PFRDA has given this permission to the subscribers according to the sixth amendment in the exit regulations and under this the subscribers can withdraw the entire amount of the pension account in a lump sum.
(Article: Rajeev Kumar)

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Nisha Chawlahttps://www.businesskhabar.com/
She is an expert in Banking, Finance and working with an international bank. She sharing her ideas and knowledge with Business Khabar.
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