The Business Bytes
TBB BUREAU
BHUBANESWAR, JANUARY 15, 2021
The Pension Fund Regulatory and Development Authority (PFRDA) has allowed National Pension System (NPS) subscribers to partially withdraw amount via self-declaration and receive the amount on the fifth day in their bank accounts.
“PFRDA had taken a series of digital initiatives to reduce turnaround time (TAT) for most of its processes and functions in the Subscriber’s interest. In this direction towards digital transformation and to provide technology-enabled solutions to its Subscribers, partial withdrawal which is allowed for NPS Subscribers to meet their specific needs, is also made online and paperless which were hitherto handled physically,” a PFRDA communiqué said today.
NPS subscribers after three years of joining the scheme are eligible for partial withdrawal of 25 percent of their self-contribution to meet their specific needs as permitted by PFRDA.
Currently, the eligible subscribers need to submit their application for a partial withdrawal to the respective nodal officers/points of presence (POPs) along with the supporting documents to substantiate the reasons for their partial withdrawals.
However, PFRDA had taken this decision to expedite the process of partial withdrawal based on self-declaration and ensure faster payment of partially withdrawn amount into the subscribers’ bank account. The partial withdrawal requests received online shall be directly processed in the Central Record Keeping Agency (CRA) system, as per the circular.
While the online withdrawal facility is being allowed, the existing offline withdrawal facility will continue and the subscribers will have the option for submitting offline requests also to the associated POPs/nodal officers.
Subscribers can submit the partial withdrawal request online/off-line to CRA/nodal office/POPs, as the case may be.
After submitting the details, a system-generated form will be available for download. The NPS subscriber may have to send this form along with the medical certificate to the nodal office. Once the nodal office processes the request, the money will be credited to the account of the subscriber.
