RBE No.08/2021: NPS – Partial withdrawal
No.2016/F(E)III/1(1)/3, dated 01.02.2021
Sub: Ease of Partial withdrawal of NPS Subscribers through self declaration – regarding.
A copy of Pension Fund Regulatory and Development Authority (PFRDA)’s circular No.PFRDA/2021/3/SUP-ASP, dated January 14, 2021 regarding ease of partial withdrawal of NPS Subscribers through self declaration is enclosed for information and compliance. The instructions contained therein shall apply mutatis mutandis on Railways also.
Pension Fund Regulatory and Development Authority
CIR No.PFRDA/2021/3/SUP-ASP/3, dated January 14, 2021
Sub: Ease of Partial Withdrawal of NPS Subscribers through Self – Declaration.
1. Presently, all NPS Subscribers who have been under the NPS for three years or more, are permitted to avail non-refundable partial withdrawal from their own contributions to the extent of 25% up to three times for specified reasons (refer Annexure I) in PFRDA (Exits and Withdrawal under the National Pension System) Regulations 2015.
2. As of now, the eligible Subscribers need to submit their application for partial withdrawal to the respective nodal officers/ POPs along with the supporting documents to substantiate the reasons for their request for partial withdrawals.
3. In order to ease the process of partial withdrawal and make it simple, online and paperless in the interest of Subscribers, it has now been decided to allow the Subscribers to allow partial withdrawal based on ‘self-declaration’ and thereby doing away with the submission of supporting documents to substantiate the reasons for partial withdrawal.
4. To further expedite the process and to ensure timely payment of partially withdrawn amount into the Subscribers’ bank account, the partial withdrawal requests received online shall be directly processed in Central Record Keeping Agency (CRA) system thereby doing away with the authorization of the request at the level of nodal office/ POP.
5. This liberalized process is however strengthened by effective due diligence with technology enabled ‘Instant Bank Account verification’ through penny drop to identify the beneficiary and the Subscriber’s bank account. In order to ensure payment of amount into correct bank account number and rightful beneficiary, CRAs shall be carrying out ‘Instant Bank Account Verification’ through penny drop and the cost of the same shall be borne by the Subscribers. The process of partial withdrawal based on self-declaration is provided at the Annexure II. Central Record Keeping Agencies (CRAs) are accordingly advised to make this feature available in their system at the earliest in the interest of Subscribers.
6. The Subscribers shall also have the option for submitting partial withdrawal requests off line with ‘self-declaration’ to the associated nodal officers/ POPs, as per the prevalent practice but without any supporting documents to substantiate the reasons for partial withdrawal.
7. This circular is issued under Section 14 of PFRDA Act, 2013 and is available at PFRDA’s website (www.pfrda.org.in) under the Regulatory framework and in “Circular” section of CRA under intermediaries.
Download Railway Board Circular RBE No. 08/2021
Forward reference ⇒ RBE No.30/2023,