PFRDA Introduces Flexibility in NPS Withdrawal and Exit Rules

The Pension Fund Regulatory and Development Authority (PFRDA) has updated National Pension System rules, allowing non-government subscribers to withdraw up to 80% of funds at exit and raising the exit age to 85. New rules also permit pledging NPS accounts for loans and increase partial withdrawal limits.

The Pension Fund Regulatory and Development Authority (PFRDA) has announced significant updates to the withdrawal and exit rules for the National Pension System (NPS), granting greater flexibility to subscribers.

Key changes include allowing non-government participants to withdraw up to 80% of their accumulated pension wealth upon exit, up from the previous cap of 60%. The exit age limit has also been extended from 70 to 85 years, providing subscribers with a longer investment horizon.

The updated regulations, effective upon Gazette publication, also allow NPS accounts to be pledged for loans within specified limits. Additionally, the number of permissible partial withdrawals has increased from three to four, with defined intervals between each.

(With inputs from agencies.)