How to Withdraw Money from NPS?

To get money from your National Pension System (NPS) account, you generally need to initiate a formal withdrawal request, which involves submitting specific forms depending on whether you're making a partial withdrawal or a full lump sum withdrawal.

The National Pension System (NPS) is a voluntary, long-term retirement savings scheme designed to allow subscribers to make defined contributions regularly during their working life. Withdrawals from your NPS account are governed by specific rules and conditions.

Understanding NPS Withdrawals

NPS offers flexibility for both partial and lump sum withdrawals, typically from your Tier 1 account, under defined circumstances:

• Partial Withdrawal: This allows subscribers to withdraw a certain percentage of their contributions before maturity, often for specific purposes like higher education, marriage, or medical emergencies.
• Lump Sum Withdrawal: This is usually applicable upon superannuation (retirement), resignation, or in case of the subscriber's demise. A portion of the accumulated corpus can be withdrawn as a lump sum, while the remaining must be used to purchase an annuity.

Offline Process for NPS Tier 1 Account Withdrawal

For those preferring an offline method to withdraw funds from their NPS Tier 1 account, follow these steps:

1. Download the Appropriate Form:

   • For a partial withdrawal, you will need to download Form 601.
   • For a lump sum fund withdrawal (e.g., upon retirement or exit), you will need to download Form 101.
     These forms are typically available on the NSDL's (National Securities Depository Limited) website, which acts as the Central Recordkeeping Agency (CRA) for NPS.

   Form Number	Purpose
   Form 601	Partial Withdrawal
   Form 101	Lump Sum Fund Withdrawal

2. Complete the Form Accurately: Print out the downloaded form and fill in all required details with accurate and up-to-date information. Ensure all mandatory fields are completed to avoid processing delays.

3. Attach Required Documents: Along with the filled-out form, you must attach all necessary supporting documents. These typically include identity proof, address proof, bank account details, and any other documents specified on the form based on the type of withdrawal (e.g., medical certificates for critical illness withdrawals).

4. Submit the Request: Once the form is fully completed and all required documents are attached, submit the entire package to your associated Point of Presence (POP). Your POP is a bank or financial institution that helps you open and manage your NPS account. They will then process your request with the CRA.

For more detailed information on NPS withdrawals, you can refer to resources provided by financial institutions like Axis Bank.