Lok Sabha Question No. 1879 (UNSTARRED), answered on 2018-12-21
Subject: NPS Withdrawal Norms
Ministry: FINANCE
Asked by: ASADUDDIN OWAISI

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

*****

## LOK SABHA UN STARRED QUESTION NO. 1879 TO BE ANSWERED ON DECEMBER 21, 2018/AGRAHAYANA 30, 1940 (SAKA) NPS WITHDRAWAL NORMS

1879. Shri Asaduddin Owaisi

Will the Minister of FINANCE be pleased to state:

- (a) whether the Pension Fund Regulatory and Development Authority (PFRDA) has changed the norms for withdrawal of National Pension System (NPS) subscribers and if so, the details thereof;
- (b) the conditions laid down for withdrawal from NPS; and
- (c) the extent and purpose for which the withdrawal is permissible after three years?

## ANSWER

## The Minister of State in the Ministry of Finance (Shri Shiv Pratap Shukla)

(a) & (b) Yes Sir.  Keeping in view the possibility of sudden financial needs of the subscribers, the requirement of minimum period under National Pension System (NPS) for availing the facility of partial withdrawal from the mandatory Tier-I account of the subscriber has been reduced from 10 years  to  3  years  from  the  date  of  joining  w.e.f.  10 th August,  2017. The  minimum  gap of 5  years between two partial withdrawals has also been removed w.e.f. 10 th August, 2017. A subscriber is eligible for three partial withdrawals during the period of subscription under NPS, each withdrawal not  exceeding  twenty-five  percent  of  the  contributions  made  by  the  subscriber  and  excluding contributions  made  by the  employer.  There  is,  however,  no  restriction  on  withdrawals  from  the Tier-II account of the subscriber.

(c) The extent and purpose for which partial withdrawals from the Tier-I account under NPS are permissible are as under:

## Purpose

- i. for higher education and marriage of his or her children including a legally adopted child;
- ii. for the purchase or construction of a residential house or flat in his or her own name or in a joint name with his or her legally wedded spouse. In case, the subscriber already owns either individually or in the joint name a residential house or flat, other than ancestral property, no withdrawal under these regulations shall be permitted;
- iii. for treatment of specified illnesses: if the subscriber, his legally wedded spouse, children, including  a  legally  adopted  child  or  dependent  parents  suffer  from  any  specified  illness, which shall comprise of hospitalization and treatment in respect of the following diseases:
4. (a) Cancer;
5. (b) Kidney Failure (End Stage Renal Failure);
6. (c) Primary Pulmonary Arterial Hypertension;
7. (d) Multiple Sclerosis;
8. (e) Major Organ Transplant
9. (f) Coronary Artery Bypass Graft;
10. (g) Aorta Graft Surgery;
11. (h) Heart Valve Surgery;
12. (i) Stroke;
13. (j) Myocardial Infarction;
14. (k) Coma;
15. (l) Total blindness;
16. (m) Paralysis;
17. (n) Accident of serious/ life threatening nature.
18. (o) Any other critical  illness  of  a  life  threatening  nature  as  stipulated  in  the  circulars, guidelines or notifications issued by the Authority from time to time.
- iv. Towards  meeting  the  expenses  by  subscriber  for  skill  development/re-skilling  or  for  any other self-development activities.
- v. Towards meeting the expenses by subscriber for establishment of own venture or any startups.
- vi. To  meet  medical  &  incidental  expenses  arranging  out  of  disability  or  incapacitation suffered.

## Limits

- i. The  subscriber  should  have  been  in  the  National  Pension  System  at  least  for  a  period  of three years from the date of his or her joining;
- ii. The subscriber shall be permitted to withdraw accumulations not exceeding twenty-five per cent of the contributions made by him or her and standing to his or her credit in his or her individual pension account, as on the date of application for withdrawal;

## Frequency

The subscriber shall be allowed to make partial withdrawals for a maximum of three times during the  entire  tenure  of  subscription  under  the  NPS.  There  is,  however,  no  minimum  time  gap  now stipulated between two partial withdrawals.

******