Check rules for National Pension System withdrawal due to Coronavirus

National Pension System Withdrawal: The Pension Fund Regulatory and Development Authority (PFRDA) has advised all Nodal office/POPs to accept the scanned and self-certified images of documents through digital means from NPS subscribers to process their withdrawal request due to Coronavirus. In a recent circular, the PFRDA noted that in the current pandemic situation, it may not be possible for many subscribers to submit physical documents for full or partial withdrawals. Hence, nodal offices/POPs should take documents in digital form to process requests by subscribers.

As per PFRDA circular, subscribers can send their withdrawal requests through their registered email ids. “The requests can be received from the registered email ids of Subscribers/Nodal officers. POPs/Nodal officer shall carry out and be responsible for due diligence before authorizing the withdrawal request,” PFRDA circular said.

Withdrawal from National Pension System (NPS) is allowed as per provisions of the NPS exit regulations. If a subscriber wants to withdraw from NPS, he/she will have to submit duly filled-up withdrawal forms along with the supporting documents to the associated Nodal officers/Points of Presence (POP) for processing their requests.

“NPS withdrawals including partial withdrawal are allowed as defined under NPS exit regulations. NPS subscribers who intend to withdraw are required to submit the duly filled-up withdrawal forms along with the supporting documents to the associated Nodal officers/Points of Presence (POP) for processing their request.”

One time exception

PFRDA said that the digital withdrawal request and acceptance process is allowed only till June 30, 2020. The Nodal officers/POPs will have to ensure that the duly authorised and completed documents reach the respective CRA by the end of July 31, 2020.

“The above process needs to be adopted on an exception basis and the one exemption is allowed only till June 30th 2020,” PFRDA said.

The regulator said the existing facility to upload the withdrawal-related documents in CRA system while initiating “online withdrawal” request can be used extensively by subscribers/ nodal officer/POPs. The documents uploaded online will help in quick processing of the withdrawal request.