How to Withdraw Funds from NPS Account for Coronavirus treatment?

The coronavirus infection has bought the orderly life of the individuals across the globe to a standstill. The pandemic has managed to spread rampantly, making it difficult for a common man to meet his needs and requirements. So to ease the burden faced by the citizens of the country, the Pension Fund Regulatory and Development Authority (PFRDA) has announced that investors can partly withdraw the amount from their Tier - I National Pension Scheme/System (NPS) accounts. The withdrawn amount comes in handy for the expenses incurred for treatment of coronavirus.

Through a circular issued on April 9, 2020, the PFRDA has classified the pandemic as a life-threatening critical illness. So, the PFRDA has allowed the subscribers of NPS to partially withdraw money for meeting expenses related to COVID - 19.

Let's check in detail about the procedure to withdraw funds from NPS for Coronavirus treatment.

Who can withdraw funds from NPS?

As per the circular issued by PFRDA, the funds can be withdrawn by the NPS Subscriber, spouse, kids (including adopted ones), dependent parents.

List of Required Documents for Withdrawing Funds from NPS

• A medical certificate from the concerned Doctor
• Duly filled in NPS form requesting for a partial withdrawal

Withdrawal Amount

The National Pension Scheme provides an option for the subscriber to withdraw the partial amount for several purposes be it for purchase or construction of the house, meeting higher educational expenses of kids, treating specific illness, Children's marriage expenses.

• As per the existing rules, the withdrawal amount from NPS should not exceed 25 per cent of the individual's self-contribution. The subscriber should have completed at least 3-years as NPS member to withdraw partial funds.
• The total amount of money which can be withdrawn will also depend on the credit standing in the Tier - I NPS account.

For Example: If the subscriber has deposited Rs 50,000 annually for 6- years in his/her NPS account, then they will be allowed to withdraw 25% of Rs 3,00,000, which is Rs 75,000 for meeting expenses of coronavirus treatment.

• NPS will allow subscribers for a maximum of up to three times of withdrawal during the entire tenure of the account. Anything over and beyond the limit is not allowed.

How to Withdraw partial funds from NPS account?

The subscriber of NPS account has to follow the below-mentioned steps to withdraw partial funds for meeting treatment expenses of virus infection:

Step 1: First, log in to the NPS account by visiting the official web portal using your User ID and Password. (User ID will be Permanent Retirement Account Number or PRAN)

Step 2: Post login, select the 'Withdrawal' option which can be found under the 'Transact Online' tab.

Step 3: Proceed further now select 'Partial withdrawal from Tier - I' option found under the 'Withdrawal' option.

Step 4: Now, you will be taken to a new web page. Now confirm your PRAN. If the PRAN is correct, click on the 'Submit' button. You will be asked to submit the system generated form with supporting documents to the Nodal Office for next step of processing.

Step 5: Now a new tab will open, this will include all the details like Name, PRAN, the amount available for withdrawal, date of birth and so on. Now you have to mention the percentage of withdrawal of funds which you want to make along with the reason for withdrawal. Now click on the 'Submit' button.

Note: The maximum partial withdrawal limit for an NPS account stands at 25 per cent of the total contributions made.

Step 6: Post submission of the request for partial withdrawal of funds from NPS account, a system-generated form will appear on the screen. The form should be downloaded and a print out has to be taken. The hardcopy of the print out has to be sent along with the medical certificate to the Nodal office for further processing.

Once the entire process gets completed, the amount will get credited to your account.

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