NPS subscribers allowed partial withdrawal for COVID-19 treatment

NPS subscribers can now make partial withdrawals towards treatment of Covid-19

NPS subscribers allowed partial withdrawal for COVID-19 treatment

NEW DELHI : National Pension System (NPS) subscribers will now be able to withdraw funds from their NPS accounts to meet any expenses related to the treatment of the highly contagious coronavirus disease which has affected more than 6,400 people and killed nearly 200 in India.

In a circular, the Pension Fund Regulatory and Development Authority of India (PFRDA) said it is allowing partial withdrawal to meet expenses related to Covid-19 treatment as the pandemic falls under the category of critical illness which is life threatening in nature.

The partial withdrawals shall be permitted to fulfil financial needs of the subscribers, if required to him/her against the request placed for partial withdrawals towards treatment of the illness of subscriber, his legally wedded spouse, children, including a legally adopted child or dependent parents, as per the regulations, PFRDA said in the circular.

To make the withdrawal, you will need to produce a medical certificate along with the partial withdrawal request.

The regulating body for NPS has also clarified that the facility of partial withdrawal will not be applicable for Atal Pension Yojana (APY) subscribers. "We would like to clarify that presently, there is no provision for subscribers to make partial withdrawals under APY," PFRDA added.

While the NPS caters to the central and state governments alongside autonomous bodies as well as individual taxpayers, APY is largely targeted for workers in the unorganised sector.

PFRDA chairman Supratim Bandyopadhyay said since the PFRDA schemes are flexible in nature as there are no due dates to make contributions, one can add funds to pension accounts at any time during a fiscal year.

Individuals, salaried or self employed, can also subscribe to the NPS scheme wherein investment of up to ₹50,000 a year is allowed tax free.