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Exit / Withdrawal

An exit is defined as closure of individual pension account of the subscriber under National Pension System.

As per PFRDA (Exits & Withdrawals under NPS) Regulations 2015, following Withdrawal categories are allowed:

  • Upon Normal Superannuation – At least 40% of the accumulated pension wealth of the Subscriber has to be utilized for purchase of an Annuity providing for monthly pension to the Subscriber and the balance is paid as lump sum to the Subscriber.
    In case the total corpus in the account is less than or equal to Rs. 2 lakh as on the Date of Retirement, Subscriber can avail the option of complete Withdrawal.
  • Upon Death – At least 80% of the accumulated pension wealth of the Subscriber has to be utilized for purchase of an Annuity providing for monthly pension to the Spouse and the balance is paid as lump sum to the nominee/legal heir.
    In case the total corpus in the account is less than or equal to Rs. 2 lakh as on the Date of Death of the Subscriber (Government sector), nominee/legal heir can avail the option of complete Withdrawal.
    Further, if family member opts for family pension, as per the Regulations, all the accumulated pension wealth shall be transferred to the bank account of the Nodal Office for further settlement as per Government directives.
  • Pre-mature Exit – At least 80% of the accumulated pension wealth of the Subscriber has to be utilized for purchase of an Annuity providing the monthly pension to the Subscriber and the balance is paid as a lump sum to the Subscriber.

In case the total corpus in the account is less than or equal to Rs. 1 lakh as on the Date of Resignation, the Subscriber can avail the option of complete Withdrawal.

Subscriber can decide to remain invested in NPS (Up to 70 years) or can exit from NPS. Following options are available to NPS Subscribers:

  • Continuation of NPS account: Subscriber can continue to contribute to NPS account beyond Retirement (Up to 70 years) and avail additional tax benefit on the contribution.
  • Deferment of Withdrawal: Subscriber can defer his/her Withdrawal and stay invested in NPS upto 70 years of age. Subscriber can defer only lump sum Withdrawal, defer only Annuity or defer both lump sum as well as Annuity.
  • Start your Pension: If Subscriber does not wish to continue/defer NPS account, he/she can exit from NPS. He/she can initiate exit request online and as per NPS exit guidelines start receiving pension.

You can find the withdrawal form of respective sector from "Form" section available on this website. Based on the different types of Withdrawal request, following forms are made available:

  • Superannuation
  • Premature
  • Death

In the context of NPS, voluntary retirement is treated as pre-mature Exit.

  • In case of Superannuation, Exit Claim ID is generated 6 months before the Date of Retirement. It enables nodal office or Subscriber to make any changes (like DOB, address etc.) in the system until one day before Date of Retirement. Withdrawal request cannot be raised without generation of Claim ID.
  • In case of Pre-mature Exit, the Subscriber needs to contact the Nodal office for generation of Claim ID for Withdrawal of NPS funds. Generation of Claim ID is not required if Withdrawal request is initiated by Nodal Office.

Generation of Claim ID is not required to process death online Withdrawal request. Nodal office can directly raise the Withdrawal request for death cases.

Claim ID will be generated by the CRA six months before the Date of Retirement. Once the claim ID is generated, Subscriber/Nodal Office will be able to initiate the online Withdrawal request in CRA system.

Withdrawal request will be processed once the nodal office verifies (if initiated by Subscriber) and authorize the Withdrawal request and Subscriber attains his/her Date of Retirement.

Online Withdrawal request can be initiated by the Subscribers using I-PIN provided to them. Such requests need to be verified and authorized by the nodal office. In case Subscriber is not able to initiate online Withdrawal request, Subscriber need to submit the physical Withdrawal form along with the required documents to the nodal office based on which Nodal Office will initiate online Withdrawal request on behalf of the Subscriber.

  • For Superannuation Withdrawal: In case Subscriber is not able to initiate online Withdrawal request, Nodal Office can capture (on behalf of Subscriber) the online Withdrawal request six months in advance from the date of Retirement. Nodal Office can initiate the request by logging using I Pin provided into the CRA website (www.cra-nsdl.com) under the menu ‘Exit Withdrawal Request’. Nodal Office can refer Demo for capturing online Withdrawal request which is available on CRA website (www.npscra.nsdl.co.in).
  • For Pre-mature Exit & Death Withdrawal: Nodal Office can initiate the request by logging using I Pin provided into the CRA website (www.cra-nsdl.com) under the menu ‘Exit Withdrawal Request’. Nodal Office can refer Demo for capturing online Withdrawal request which is available on CRA website (www.npscra.nsdl.co.in).

Yes maker-checker concept is applicable in Withdrawal request.

Nodal Office has to capture the Withdrawal request using one user Id (maker) and authorize the same using other user Id (checker).

Further, if superannuated Subscriber has captured the Withdrawal request in CRA system, Nodal Office has to verify that Withdrawal request in CRA system using one user Id (maker) and authorize the Withdrawal request in CRA system using other user Id (checker).

Following documents are to be obtained along with the completely filled Withdrawal form for Superannuation & Pre-mature Exit:

  • Advanced stamped receipt needs to be duly filled and cross-signed on the Revenue stamp by the Subscriber.
  • KYC documents (address and photo-id proof)
  • Cancelled Cheque’ (having Subscriber’s Name, Bank Account Number and IFS Code) or ‘Bank Certificate’ on Bank Letterhead having Subscriber’s name, Bank Account Number and IFS Code required to be submitted as bank proof. ‘Copy of Bank Passbook’ can be accepted, however, it should have Subscriber’s photograph, Name and IFS Code on it and should be self-attested by the Subscriber.
  • "Request Cum Undertaking" form if eligible for complete Withdrawal.

After obtaining required documents, Nodal Office should capture the online Withdrawal request through maker and checker concept. Nodal Office should authorize Withdrawal form & supporting documents and attach covering letter and forward the same to CRA for storage purpose.

  • Advanced stamped receipt needs to be duly filled and cross-signed on the Revenue stamp by the Subscriber.
  • In case of Superannuation, a Subscriber can claim 100% Withdrawal if the total accumulated corpus is less than Rs. 2,00,000 at the time of Superannuation/attaining age of 60 years.
  • In case of Pre-mature Exit, if the total accumulated corpus is less than Rs. 1 Lakh, the Subscriber can avail the option of complete Withdrawal.

No, Non-IRA Subscriber has to submit CSRF form to become IRA compliant. Once the Subscriber is IRA compliant he/she can initiate the online Withdrawal request in CRA.

However, in case of exit due to death, Subscriber need not be IRA Compliant. Nodal Office can capture the online request even though Subscriber is non IRA Compliant.

Following documents are to be obtained along with the completely filled Withdrawal forms:

  • Advanced stamped receipt need to be duly filled and cross-signed on the Revenue stamp by the Claimant.
  • KYC documents (address and photo-id proof)
  • 'Cancelled Cheque’ (having claimant’s Name, Bank Account Number and IFS Code) or ‘Bank Certificate’ on Bank Letterhead having claimant’s name, Bank Account Number and IFS Code required to be submitted as bank proof. ‘Copy of Bank Passbook’ can be accepted, however, it should have claimant’s photograph, Name and Bank IFS Code on it and should be self attested by the claimant.
  • Copy of Death Certificate issued by the Registrar of birth and death
  • NO objection Certificate (NOC) is required to be submitted by the mapped nodal office.

After obtaining required documents, Nodal Office should capture the online Withdrawal request through maker and checker concept. Nodal Office should authorize Withdrawal form & supporting documents and attach covering letter and forward the same to CRA for storage purpose.

Nominee available in the office record with his or her employer for the purpose of receiving other admissible terminal benefits shall be treated as nominee for the purposes of receiving benefits under the National Pension System.

Such Withdrawal request will be processed as per below mentioned scenario:

  • Withdrawal form needs to be submitted by all the nominees registered in CRA system.
    If some nominee/s doesn’t not want to claim the NPS corpus:
    • Relinquishment deed is to be submitted by the nominee/s who doesn’t want to claim the NPS benefits.
    • Indemnity Bond is to be submitted by the nominee who is claiming the NPS benefits.
  • In case one nominee is a major and other is a minor,
    • Major nominee will submit his/her Withdrawal form.
    • Guardian (on behalf of minor) will submit the Withdrawal form along with the birth proof of the minor.

Nodal Office has to submit following documents where disability/family pension is being paid:

Annexure 1: Declaration by Nodal Office (disability/family pension is being paid) mentioning bank account details of Nodal Office.

Annexure 2: Declaration from nominee/legal heir mentioning that nominee/legal heir will not get NPS benefits.

The employer shall send a confirmation of such nominations in its records, to the National Pension System Trust or the NSDL-CRA, while forwarding the claim for processing.

No, w.e.f. April 1, 2016, PFRDA has made it mandatory for all the nodal office to raise the Withdrawal request online using the 'Online Withdrawal' module available in CRA system. Physical Withdrawal request submitted by the Nodal Office will not be processed by CRA.

The Withdrawal form needs to be submitted at the following address for further processing:

NPS Claim Processing Cell
Central Recordkeeping Agency,
NSDL e-Governance Infrastructure Limited,
1st Floor, Times Tower, Kamala Mills Compound,
SenapatiBapatMarg, Lower Parel,
Mumbai-400013.

The Withdrawal proceeds are credited in Subscriber/Claimant bank account (as per the bank details provided at the time of initiating online Withdrawal request) through electronic mode only.

Nodal Office/Subscriber can check Withdrawal status as per below mentioned option:

  • Nodal Office/Subscriber can check through the ‘Limited Access View’ (Pre Login) functionality which is available at CRA website home page (www.cra-nsdl.com).
  • Nodal office/Subscriber can also check the status under the menu ‘Exit Withdrawal Request’>>'Withdrawal Request Status View’ by logging into website (www.cra-nsdl.com).

In the context of NPS, Annuity refers to the monthly sum received by the Subscriber from the Annuity Service Provider (ASP). A percentage of the pension wealth as decided by the Subscribers (minimum 40% & 80% is to be invested with ASP in case Withdrawal is due to Superannuation & Pre-mature Exit and Death respectively) is utilized for purchase of Annuity from the empaneled Annuity Service Providers.

Indian Life Insurance companies which are licensed by Insurance Regulatory and Development Authority (IRDA) can act as Annuity Service Providers. However, Annuity Service Providers needs to be empanelled by PFRDA to provide Annuity services to the NPS Subscribers. The list of Annuity service providers empaneled by PFRDA can be accessed at: https://www.npscra.nsdl.co.in/Annuity-service-providers.php.

Annuity starts immediately, if Subscriber fulfills the Age and Corpus criteria for purchasing Annuity (depending upon choice of ASP and Annuity scheme of the respective Annuity Service Provider).

Following schemes are available with ASPs:

  1. Annuity for life - On death of the annuitant, payment of Annuity ceases.
  2. Annuity for life with return of purchase price on death - On deathof the annuitant, payment of Annuity ceases and the purchase price isreturned to the nominee
  3. Annuity payable for life with 100% Annuity payable to spouse ondeath of annuitant - On death of the annuitant, Annuity is paid to thespouse during his/her life time. If the spouse predeceases the annuitant,payment of Annuity will cease after the death of the annuitant.
  4. Annuity payable for life with 100% Annuity payable to spouse ondeath of annuitant with return on purchase of Annuity - On death ofthe annuitant, Annuity is paid to the spouse during his/her life time andpurchase price is returned to the nominee after the death of the spouse.
  5. Default Annuity Scheme (Applicable in case of Government SectorSubscribers only): kindly refer question no. 27 for detail description.

Default Annuity Scheme shall provide for Annuity for life of the Subscriber and his or her spouse (if any) with provision for return of purchase price of the Annuity and upon the demise of such Subscriber, the Annuity be re-issued to the family members in the order specified hereunder at a premium rate prevalent at the time of purchase of such Annuity by utilizing the purchase price required to be returned under theAnnuity contract (until all the family members in the order specified below are covered):

  1. Living dependent mother of the deceased Subscriber;
  2. Living dependent father of the deceased Subscriber.

After the coverage of all the family members specified above, the purchase price shall be returned to the surviving children of the Subscriber and in the absence of children, the legal heirs of the Subscriber, as may be applicable.

In case of Superannuation & Pre-mature Exit, Subscriber can purchase any one scheme which are available with respective Annuity Service Provider. However, In case of death, Spouse has to purchase Default Annuity Scheme.

Once an Annuity is purchased, the option of cancellation or reinvestment with another AnnuityService Provider or in other Annuity scheme shall not be allowed unless the same is within the time limit specified (free look period as provided in terms of the Annuity contract or specifically provided by the IRDA) by the Annuity Service Provider.

The mode and manner of payment of amount (if any) will depend on the type of Annuity scheme selected by the Subscriber while buying the Annuity. Family members of the deceased Subscriber need to contact concerned Annuity Service Provider.

At present five ASPs are providing the Annuity services to the NPS Subscribers. The ASPs are as follows:

  1. Life Insurance Corporation of India
  2. SBI Life Insurance Co. Ltd.
  3. ICICI Prudential Life Insurance Co. Ltd.
  4. HDFC Standard Life Insurance Co Ltd
  5. Star Union Dai-ichi Life Insurance Co. Ltd.

The contact details of the ASPs are available at https://www.npscra.nsdl.co.in/Annuity-service-providers.php

Continuation/Deferment option shall be exercised at least fifteen days prior to the age of superannuation and same should be authorised by the Nodal Office in the CRA system. The Subscriber may exit at any point of time from National Pension System.

If Subscriber has initiated the Continuation/Deferment Withdrawal request in CRA system, Nodal Office is required to ‘Verify’ and ‘Authorize’ the request in CRA system.

  1. The PAO/DTO will verify request in CRA system using one user Id by clicking sub-menu ‘Verify Deferment’ under ‘Exit Withdrawal Request’ menu.
  2. PAO/DTO is required to authorize the request in CRA system using another user Id. User is required to click menu ‘Exit Withdrawal Request’ and sub-menu ‘Authorise Deferment’ to authorize the Continuation/Deferment Request.

Alternatively, Nodal Office can also initiate the Continuation/Deferment Withdrawal request on behalf of Subscriber as mentioned below:

  1. Log-in to CRA system (www.cra-nsdl.com) using one user Id
  2. Select option Exit Withdrawal request ->Initiate Deferment
  3. Select transaction type->new request and click on submit and enter PRAN on the next screen
  4. Select appropriate option – Continuation or Deferment
  5. Select POP SP name (for Govt. Subscribers) – If POP-SP is not selected, Govt. Subscribers will be tagged to e-NPS by default.
  6. Submit the request.
  7. Nodal Office is required to authorize the request in CRA system through another user Id. User is required to click menu ‘Exit Withdrawal Request’ and sub-menu ‘Authorise Deferment’ to authorize the Continuation/Deferment Request.

Facility of phase Withdrawal is available for NPS Subscribers. Subscriber can opt for Withdrawal of lump-sum amount in a phased manner (upto 10 installments) over the period from 60 years (or any other retirement age as prescribed by the employer) to 70 years. However, Subscriber has to buy Annuity prior to Phased Withdrawal.

No, lump-sum deferment option is not available to Subscribers who are exiting NPS due to Pre mature Exit.

No, Subscriber can't exercise the option of deferment (lump-sum and Annuity) after obtaining the continuation option.

Yes, Subscriber can continue his/her Tier-2 account till the time his/her Tier-1 account active.

No, NPS Subscriber can't avail loan against his/her NPS account.

Yes, Partial Withdrawal facility is available for NPS Subscribers whereby Subscriber can opt for Withdrawal of certain amount out of his own contribution.

Following are the conditions of Conditional Withdrawal:

  1. Subscriber should be in NPS system for 3 years
  2. Withdrawal amount will not exceed 25% of the contributions made by the Subscriber
  3. Withdrawal is allowed only against the specified reasons-
    • Higher education of children
    • Marriage of children
    • For the purchase/construction of 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.
    • For treatment of specified illnesses - suffered by Subscriber, his legally wedded spouse, children including a legally adopted child and dependent parents.
  4. Withdrawal can happen maximum of three times during the entire tenure of subscription.

If Subscriber has initiated the Withdrawal request in CRA system, Nodal Office is required to ‘Verify’ and ‘Authorize’ the Withdrawal request in CRA system.

  1. The PAO/DTO will verify Withdrawal request in CRA system using one user Id by clicking sub-menu ‘Verify Conditional Withdrawal Request’ under ‘Transaction’ menu.
  2. PAO/DTO is required to authorize the request in CRA system using another User Id. User is required to click sub-menu ‘Authorise Conditional Withdrawal Request’ under ‘Authorise Request’ Menu to authorize the Partial Withdrawal Request.

Alternatively, Nodal Office can also initiate the Partial Withdrawal request on behalf of Subscriber as mentioned below:

  1. The PAO/DTO will capture Withdrawal request in CRA system using one user Id by clicking sub-menu ‘Initiate Conditional Withdrawal’ under ‘Transaction’ menu.
  2. PAO/DTO is required to authorize the request in CRA system using another User Id. User is required to click sub-menu ‘Authorise Conditional Withdrawal Request’ under ‘Authorise Request’ Menu to authorize the Partial Withdrawal Request.

No, upon exit from Tier-1 account, Tier-2 account gets closed automatically.

For queries related to tax benefits under NPS, please refer questions on "Tax Benefit under NPS" of this FAQs section.

No. Tax benefits are not available in case of Tier -2 Withdrawal