What is the NPS withdrawal online Process

What is NPS (National Pension Scheme)?

NPS is a pension scheme in India. NPS started with the decision of the Government of India for all its employees who joined after 01 January 2004. NPS is regulated by PFRDA (Pension Fund Regulatory and Development Authority).

NPS Withdrawal Online Process

Every NPS subscriber wants to know that what is the NPS withdrawal process. Here I am providing the process for NPS withdrawal online. The process of online withdrawal from the NPS account is called the e-NPS withdrawal process.

e-NPS withdrawal process:

One option is available on the respective CRA website to submit withdrawal requests under the e-NPS withdrawal process. PFRDA provides the facility to withdrawal online from the NSP account in two major conditions.
  • 01. Normal /Premature NPS withdrawal
  • 02. NPS withdrawal due to the death of the subscriber

01. Normal/Premature NPS withdrawal online

For this purpose, limited access would be provided on CRA Website to the subscriber to provide NPS withdrawal request details and upload scanned documents.

The subscriber shall provide details of bank account, address, etc. and upload scanned copies of his KYC documents and bank account proof.

Read Also: Change in investment guideline for NPS Scheme

The option of e-sign shall be provided to make the process paperless.

Once the NPS withdrawal request is successfully submitted online by the subscriber with e-sign, KYC documents shall be displayed online to Bank-POP for verification. The verification of the documents would be done by the Subscriber’s bank.

Once verified, the exit would be processed by the CRA.

02. NPS withdrawal due to Death

The nominee/claimants can also opt to submit the exit form to NPS Trust with the required documents after verification of his KYC by his bank. The nominee has to get a Bank’s KYC confirmation on the bank’s letterhead containing the photo and signature of the nominee.

The Bank’s letter needs to be signed with seal by the designated bank official where the nominee has the bank account and where the claimants would like to receive the lump sum and/ or annuity and submit the same to NPS Trust.

Post receipt of duly verified documents in the manner as given in the above-referred supra.

NPS Trust will authorize the withdrawal request after due diligence and after satisfying itself about the veracity of the claim.

Address of NPS Trust:

National Pension System Trust,
3i’d Floor, Chhatrapati Shivaji Bhawan,
_13-14/A, Qutab Institutional Area,
New Delhi —110016

Fees for processing for NPS withdrawal to Bank-POPs

Banks shall get a fee © 0.125% of the total NPS corpus (Minimum amount of Rs.125/- and maximum Rs. 500/4 These proposed charges to Bank— PoPs would be applicable for both online/offline KYC verification process related to eNPS exits.

Important Information: The above process of e NPS exits co-exists along with the existing modes of handling of e- NPS exits.

NPS withdrawal Process Chart

A chart is also available to understand the process of NPS withdrawal online through the e-NPS withdrawal process.

What is the NPS withdrawal online Process

Click Here to download the full PDF file