The Pension Fund Regulatory and Development Authority (PFRDA) on September 21, 2021 has issued enhancement of Lump sum Withdrawal limit on Exit. The exit/withdrawal norms of the Subscribers are defined by PFRDA (Exits and Withdrawals under NPS) Regulations, 2015.
Therefore, the provisions of exit regulations require the Subscribers during exit, to utilize a certain percentage up to which their corpus can be withdrawn as lump sum and the balance is to be utilized to buy annuity from the Annuity Service Providers (ASP) empaneled by PFRDA. However, there is no restriction for any Subscriber to buy annuity from the corpus partly or fully.
Further, the provisions related to lump sum withdrawal have been modified for the benefit of Subscribers are specified under PFRDA (Exit and Withdrawal) (Amendment) Regulations, 2021, dated June 14, 2021.
[Circular No- PFRDA/2021/41/SUP-ASP/06]
