With the Finance Ministry approving some changes in rules, the New Pension Scheme (NPS) holders can withdraw the entire fund on retirement if the total amount is Rs 2 lakh or less.
“When, on superannuation, a request is received from a subscriber, other than the subscriber under NPS-Lite Swavalamban Scheme, having pension wealth of Rs 2 lakh or less, he/she may opt for withdrawal of total pension wealth,” a notification issued by the Ministry of Finance stated.
Currently, over 4,400 accounts have accumulated amounts of Rs 2 lakh or lower. Around 600 account holders have made a request for withdrawal.
Normally, an individual can exit either at or after the age of 60. However, from March 2013, subscribers were allowed to stay invested till the age of 70, but with some conditions such as no-contribution or part-withdrawal between the ages of 60 and 70.
Published 19 October 2013, 20:07 IST