NPS Partial Withdrawal
Eligibility for NPS Partial Withdrawal
Circumstances for NPS Partial Withdrawal
The purposes for which you can make a nps partial withdrawal request include:
- a. Higher education for your children, including a legally adopted child
- b. Marriage of your children, including those legally adopted
- c. Purchase or construction of a residential house or flat in your name or a joint name with your legally wedded spouse
- d. Specified illnesses that involve hospitalization and treatment, either of yourself or your legally wedded spouse, your children (including those legally adopted), or dependent parents
- e. Meeting your medical and incidental expenses arising out of a disability or incapacitation suffered
- f. Meeting your expenses for skill development or re-skilling, or any other self-development activities, as permitted by PFRDA
- g. Establishment of your venture or start-up, as permitted under PFRDA guidelines
There are 14 specific diseases covered for partial withdrawal, including other critical illnesses of a life-threatening nature as may be mentioned in the circulars, notifications or guidelines issued by PFRDA at different points in time. These include:
- a. Cancer
- b. Primary pulmonary arterial hypertension
- c. Kidney failure (end-stage renal failure)
- d. Multiple sclerosis
- e. Major organ transplant
- f. Coronary artery bypass graft
- g. Aorta graft surgery
- h. Heart valve surgery
- i. Stroke
- j. Myocardial infarction
- k. Coma
- l. Total blindness
- m. Paralysis
- n. Accident of a serious or life-threatening nature
Process Summary of NPS Partial Withdrawal Online
Process Flow for Online Withdrawal Requests:
The process flow for processing online withdrawal requests involves the submission of a filled-out physical withdrawal form and KYC documents by the subscriber to the nodal office through the DDO. It also includes the verification and attestation of the request by the nodal office, the initiation and authorization of the withdrawal requests in the CRA system by the nodal office, and the transfer of funds to the subscriber’s bank account by the trustee bank.
Preface:
- PFRDA has made it mandatory for all nodal offices to process withdrawal claims of their underlying subscribers on the online platform starting April 1, 2016, to facilitate and expedite the settlement of withdrawal claims.
- In the case of superannuation, a subscriber can receive a maximum of 60% as a lump sum, and a minimum of 40% needs to be utilized towards the purchase of an annuity.
Procedure for Processing Online NPS Withdrawal Requests:
- The superannuation withdrawal request can be initiated by the subscriber or by the nodal office. This document describes the withdrawal procedure to be followed by the nodal offices for processing the online superannuation withdrawal request in the CRA system.
Steps to Initiate Online Withdrawal Request in CRA System by Nodal Office:
- The nodal office user can initiate the superannuation withdrawal request in the CRA system six months before the age of superannuation or reaching the age of 60 years using the claim ID generated by CRA.
Information Required for Initiating Withdrawal Request:
- The user needs to ensure the address, contact details, nomination details, PAN registration, FATCA compliance, and updated bank details of the subscriber are correct in the CRA system before initiating the exit request.
Initiation of Online Withdrawal Requests:
- The superannuation withdrawal request can be initiated by the subscriber in the CRA system at www.cra-nsdl.com. Submission of the system-generated withdrawal form along with KYC documents and bank account proof to the nodal office through the associated DDO is part of the initiation process.
User Authorization and Submission:
- The user needs to enter the PRAN of the subscriber for whom the withdrawal request needs to be processed, select withdrawal type as superannuation, provide the withdrawal fund allocation percentage, select the annuity frequency, marital status of the subscriber, annuity service provider, and annuity scheme.
Subscriber Details Verification:
- The user verifies and ensures the correctness of subscriber details, address, and existing bank details before initiating the withdrawal request in the CRA system.
Initiating Withdrawal Request:
- Bank details and PAN are non-editable at the initiation stage.
- The user needs to update incorrect or unavailable bank details and PAN before initiating the withdrawal request.
Entering Contact and Nominee Details:
- Users can edit contact details by clicking on the Edit button.
- Nomination details can be entered by clicking on the Edit button for entering nominee addresses.
Declaration and Document Checklist:
- Users need to confirm their politically exposed status and select the necessary declarations before proceeding.
- The document checklist includes the withdrawal form, bank proof, and ID & address proof to be submitted by the user.
Confirmation and Authorization:
- Confirmation of withdrawal is done by clicking on the Confirm button after submitting the necessary documents.
- Nodal office authorization is required for the withdrawal request in the CRA system using another User ID.
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