Big news for NPS account holder’s. NPS, or the National Pension System, is a scheme designed to provide a steady income during retirement. The funds you contribute to this plan are accessible only when you retire. You can kickstart your NPS journey with a minimum investment of just Rs 1000. There are two types of accounts available: Tier 1 and Tier 2. The Tier 1 account restricts withdrawals until retirement, while the Tier 2 account allows for withdrawals at any time.
Many people believe that they can only access their NPS funds after reaching 60 years of age.
How can you withdraw money from NPS in case of an emergency?
Step 1: Start by visiting the official NSDL website.
Step 2: Log in using your PRAN number and date of birth.
Step 3: Next, you can submit a request to withdraw funds.
Step 4: Fill out the withdrawal form and provide any necessary KYC documents.
Step 5: After verification, your funds will be released.
Key rules for withdrawing funds
If your account balance is under Rs 5 lakh, you can withdraw the full amount. You must have been part of the NPS for at least 3 years. Additionally, you can only make withdrawals three times throughout the duration of the scheme. Withdrawals before retirement are permitted only under specific circumstances, such as for children’s higher education, marriage, purchasing a home, or serious health issues.
When can you close your NPS account?
You can also close your NPS account under certain conditions. The government has set specific rules for this, including a lock-in period of 5 to 10 years. This means you won’t be able to close your account during this timeframe.
Once the long-term period of the scheme is over, you have the option to opt out if you want. But if you’re employed, you can only withdraw funds from the NPS after a decade. This means you’ll need to keep contributing to your NPS account for 10 years.