When can a subscriber withdraw from NPS?
As per the Pension Fund Regulatory and Development Authority of India (PFRDA) exit and withdrawal regulations, a subscriber can exit from the National Pension System (NPS) in the following ways. At the time ofsuperannuation  When an NPS subscriber reaches the age of superannuation, i.e., he/she attains the age of 60, he/she can withdraw 60% of the accumulated corpus as a lump sum tax-free. The remaining 40% of the accumulated pension corpus has to be used to purchase an annuity that can provide regular pension income. The annuity is taxable. However, a subscriber can withdraw the 100% lump sum amount if the total accumulated pension corpus is less than or equal to 2 lakh. Making apremature exit  If an NPS subscriber wants to make a premature exit, i.e., before the age of 60, then he/she needs to utilize at least 80% of the accumulated pension corpus to purchase an annuity that can provide a regular monthly pension income. The remaining 20% of the funds can be withdrawn as a lump sum. However, in such a case, you can only exit from the NPS after the completion of 10 years. Besides, a subscriber can withdraw the 100% lump sum amount if the total accumulated pension corpus is less than or equal to 1 lakh. Death of thesubscriber  In the case of an NPS subscribers demise, the complete accumulated pension corpus is paid to the nominee/legal heir of the subscriber. How to exit  In the offline mode, an NPS subscriber has to physically approach the points of presence (PoPs) to complete the withdrawal request process. Submit the relevant KYC documents to the PoP, which will usually be your bank. In the case of online mode, the subscriber has to log in to the Central Record Keeping Agency (CRA) system, such as enps.nsdl.com for NSDL CRA. One has to then enter relevant details such as corpus allocation for a lump sum and annuity, annuity service provider and annuity scheme and upload the withdrawal documents, including KYC. Subscribe to Mint Newsletters * Enter a valid email * Thank you for subscribing to our newsletter.