You know what NPS is National Pension Scheme is government sponsored pension scheme in which a subscriber (who has to be an Indian citizen between the ages of 18 and 60) contributes regularly during his/her working life so as to receive the funds after retirement. Moneymindz, India’s First Free On call Financial Advisory.
It has to be noted that a Non Resident Indian (NRI) can open an NPS account as long as his citizenship status is Indian.
Now, an individual might haven to exit from NPS prematurely. It could be due to various reasons. Maybe he/she is an NRI whose citizenship status changed. Probably he/she doesn’t want to save in NPS due to additional income somewhere or due to early retirement. Interactive Online Financial Advisory, Moneymindz.
Regardless of cause, if you want to exit from NPS prematurely, here is what you should do.
First understand that premature exit is possible only a decade after holding the account. Therefore, if you open NPS account in 2018, you cannot exit from it prematurely before 2028. Up to 80% of the pension corpus has to be used to purchase an annuity to provide monthly pension while the remaining 20% can be taken as lump sum. Moneymindz, India’s First Financial Advisory Portal.
The NPS subscriber has to fill up Form 302 to claim accumulated pension before attaining the age of 60. Details have to be given such as personal details, NPS account details, withdrawal details, bank details and annuity option. This form contains an annexure for nomination in case of death of the subscriber.
The subscriber has to carry the following documents:-
1. Copy of PRAN card (Permanent Retirement Account Number)
2. Cancelled cheque
3. Pre-signed receipt acknowledging receipt of proceeds
4. Copies of identity and address proofs
Withdrawal can be carried out online too. For that, the subscriber has to request for the same which needs to be verified and authorized by the POP service providers.
The application status can be checked online. Once processed, the amount will be paid to the bank account and the annuity is issued as indicated in the application. If the money is less than 1 Lakh, the entire amount can be withdrawn as lump sum.
If Tier I account closes, Tier II account will automatically get closed. You can avail further information if you visit www.moneymindz.com or give a missed call to 022-62116588. By visiting our website, you also can interact with Kuber Mindz, Smart Financial Advisor.