In what is expected to bring relief to lakhs of Pensioners, the Pension Fund Regulatory and Development Authority (PFRDA) may allow them to withdraw their entire lifetime contribution to NPS with a higher threshold.
An IANS report, quoting sources in the government said National Pension System (NPS) may be able to withdraw their entire money at one go if pension corpus is up to Rs 5 lakh. At present, there is a threshold of Rs 2 lakh upto which a NPS subscriber can withdraw the entire money. Beyond this limit, currently only 60 per cent of pension corpus could be withdrawn while 40 percent of the contributions has to be mandatorily parked in government-approved annuities.
Who can open National Pension System (NPS) Account?
Any individual citizen of India (both resident and Non-resident) in the age group of 18-65 years (as on the date of submission of NPS application) can join NPS. Although opening multiple NPS accounts for an individual is not allowed under NPS, an Individual can have one account in NPS and another account in Atal Pension Yojna.
Any individual citizen of India (both resident and Non-resident) in the age group of 18-65 years (as on the date of submission of NPS application) can join NPS. But don't be confused with a joint account. National Pension System account can be opened only in an individual capacity and cannot be opened or operated jointly or for and on behalf of HUF.
Current Withdrawal Limit?
As of now, the breaking point is Rs 2 lakh up to which an NPS supporter can pull out the whole cash. Past this breaking point, at present, just 60% of the benefits corpus could be removed while 40% of the commitments must be obligatorily stopped in government-endorsed annuities.
Plan To Expand As Far As Possible To Rs 5 Lakh
As per the report, the arrangement is to expand the edge to Rs 5 lakh that will offer better liquidity to certain fragment supporters.
Who Can Open National Pension System (NPS) Account?
To turn into a NPS account holder an individual resident of India can be both occupant and Non-inhabitant in the age gathering of 18-65 years as on the date of accommodation of the NPS application.
In any case, you need to take note of that an individual cannot open various NPS accounts. Additionally, a NPS record can be opened distinctly in an individual limit and cannot be opened or worked together or for and for HUF.
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