PFRDA proposes up to 25% withdrawal from NPS after 10 years

Pension regulator PFRDA has proposed allowing subscribers of National Pension System (NPS) to withdraw up to 25% of accumulated funds for meeting medical treatment expenses, higher education of children, marriage of daughters and house purchase.

The "partial withdrawal" is however allowed only after 10 years of contribution by the subscriber, said the draft guidelines by the Pension Fund Regulatory and Development Authority (PFRDA).

"This withdrawal may be treated as partial withdrawal and whereby the subscriber can withdraw not exceeding twenty-five percent (25%) of the contribution made by the subscriber...," the guidelines said.

As of now, partial withdrawals are not permitted and an NPS subscriber has to completely exit the scheme for withdrawl before maturity.

NPS is a long-term, retirement savings product which accumulates and generates maximum pension wealth.

NPS is mandatory for all central government employees who joined services after April, 2004 and is open to other citizens also.

The partial withdrawal, the PFRDA proposed, would be permitted from the individual pension account for higher education and marriage of children and purchase or construction of residential house/flat.

The account holder can also opt for partial withdrawal to meet treatment expanses for certain illnesses, like cancer, kidney failure, major organ transplant, heart valve surgery, stroke, total blindness and paralysis.

On frequency of withdrawal, the guidelines said the subscriber may be allowed to withdraw at the most 3 times and there should be a gap of at least 5 years between two withdrawls.

The PFRDA has sought public comments on draft guidelines till February 15.


  • India can increase its GDP by letting women take as much part as men in the economy

    Women hold up half the sky. So said Mao Zedong. Now, McKinsey Global Institute (MGI) tells us that they can hold up more than half the sky.


Stay informed on our latest news!


Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs


Amita Sharma

Rank disorder in higher education

Two Indian institutes count among the wo­rld’s top 200 in ...

Zehra Naqvi

Little known gems

Fame, as they say, is a fickle mistress. And all ...

Bubbles Sabharwal

Harmony is a work in progress

Things, events, feelings, people... nothing has value attached to it, ...


William D. Green

Chairman & CEO, Accenture