As per Pension Fund Regulatory & Development Authority (PFRDA) Exit Rules, following Withdrawal categories are allowed:
Based on the different types of Withdrawal request, following forms are required to be submitted to the concerned Nodal Office
|Type of Withdrawal Request||Central / State Government||Corporate / All Citizens of India (NPS-Lite) Sector||Swavalamban Sector|
Withdrawal forms are available on the NSDL-CRA Corporate Website (http://www.npscra.nsdl.co.in). Subscriber can also send an e-mail to email@example.com or firstname.lastname@example.org to get the Withdrawal forms on their e-mails.
For any superannuating Subscriber/attaining 60 years of age, CRA generates a Claim ID six months prior to the date of retirement or attaining 60 years of age. CRA intimates the generation of Claim ID to the subscriber / Nodal Office vide e-mails, letters, SMS. Nodal Office can also view the Claim IDs generated for underlying Subscribers at ‘Welcome Page’ in CRA site.
For Pre-mature Exit and Death cases, the Claim IDs will be generated by subscribers’ mapped Nodal Office or CRA when the Withdrawal request for the same is received.
If the Claim ID is not generated for a Subscriber even if the date of retirement is less than six months away, the concerned Nodal Office should update the correct retirement date in the CRA system.
If the Subscriber is going to superannuate six months from now, the Subscriber can submit his Withdrawal Form anytime after the generation of Claim ID, however the Withdrawal request will be processed only after completion of Superannuation age/ Date of Retirement (as per the CRA records).
In order to generate Claim ID for Withdrawal of NPS funds in case of Pre-mature Exit, the Subscriber would have to contact the Nodal office for generation of Claim ID.
Subscriber can capture the online Withdrawal request six months in advance from the date of superannuation/ attaining the age of 60. Subscriber can submit the request by logging into the CRA website (www.cra-nsdl.com) under the menu "Exit Withdrawal Request".
No, the Withdrawal forms should be submitted to the associated Nodal Office for onward submission at CRA. Nodal Office should stamp and authorised the form after performing the necessary due diligence for the form and the supporting documents. The duly authorised forms and the documents can be then be forwarded to CRA for further processing.
A Non-IRA compliant Subscriber can submit the Withdrawal request at CRA. However, the Subscriber would also have to submit the Form - S1 (Subscriber Registration Form) alongwith his Withdrawal request.
In case of Pre-mature Exit, 100% is not allowed. However, 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.
Following documents are to be submitted alongwith the completely filled Withdrawal form for Superannuation & Pre-mature Exit at CRA:
Nominee(s) registered in the CRA system can submit the Withdrawal request to CRA through the Subscriber’s associated Nodal Office. If the Subscriber was Non – IRA (Non-Individual Retirement Account) or Nominee was not registered with CRA, legal heir(s) can submit the Withdrawal request.
Withdrawal form needs to be submitted by all the nominees registered in CRA system. In case the nominee is a minor, Withdrawal form has to be submitted by the guardian along with the birth certificate of the minor.
Following documents are to be submitted alongwith the completely filled Withdrawal forms at CRA:
Nodal Office and Subscriber can send an e-mail to email@example.com or firstname.lastname@example.org for any query.
The major reasons why a Withdrawal request is‘rejected’ or kept ‘on hold’:
The Withdrawal proceeds are credited electronically to the bank account of the Subscriber/Claimant (as per the bank details provided in the Withdrawal form).
No, Withdrawal proceeds are credited electronically to the bank account of the Subscriber/Claimant, as the case maybe. It is necessary for the Subscriber /Claimant to have a bank account.
Following communications are sent to the Subscribers during the Withdrawal process:
Withdrawal status can be checked through the ‘Limited access View’ functionality which is available at CRA website (www.cra-nsdl.com). Nodal Office and Subscriber can also check the status under the menu ‘Exit Withdrawal Request’ by logging into website.
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 respectively) is utilized for purchase of Annuity from the ASP.
In order to withdraw from Tier II account, the Subscriber needs to submit a duly filled UOS-S12 to the associated POP-SP. On T+3 days, (T being the date of processing) the funds are transferred from the Trustee Bank to Subscriber’s bank account as registered in the CRA system and the onus of tax payment on the withdrawal lies with the Subscriber since NPS system does not deduct any tax at source.
The units available in the Tier II account of the NPS Subscriber (for Subscriber holding a Tier II account) who has submitted a Withdrawal request for Tier I at CRA (provided the request stands approved from the concerned authority) are redeemed alongwith the Tier I balance. The funds redeemed are transferred to the account provided by the Subscriber in the Withdrawal form.
Subscribers exiting NPS on account of Superannuation can opt for deferring the Withdrawal of their lumpsum share (maximum 60%) to a maximum period of 10 years or 70 years of age (whichever is earlier).
As per PFRDA Exit Rules, Subscribers exiting NPS on account of Superannuation or Pre-mature Exit can defer purchase of Annuity (minimum 40% & 80% is to be invested with ASP in case Withdrawal is due to Superannuation & Pre-mature Exit respectively) for a maximum period of 3 years.