Can an NRI withdraw from NPS before the age of 60?

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The exit age from NPS is on attaining 60 years. However, there is an option to exit early before the age of 60 or upon the death of the subscriber.

In case one exits before the age of 60, only 20% maximum of the lump sum amount of corpus collected is paid to the subscriber and 80% is to be utilized towards the purchase of an annuity. Only if the corpus amount is less than Rs 1 lakh, full withdraw is allowed.

In case of death of the subscriber, the full amount is paid to the nominee. The purchase of an annuity is an option in case of death.

Apart from an early exit from NPS, there is an option for partial withdrawal as well permitted in case of specific reasons. In partial withdrawal, one can withdraw up to 25% of the corpus accumulated provided he has been with NPS for 10 years. The partial withdrawal is allowed only 3 times during the entire NPS span with a gap of 5 years between two withdrawals.


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