InvestorQ : Does the three-withdrawal restriction hold true for all NPS subscribers?
priya Shah made post

Does the three-withdrawal restriction hold true for all NPS subscribers?

Answer
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Nitin Shah answered.
1 year ago


No. The three withdrawal in a year restriction doesn’t hold for all NPS subscribers.

As NPS is a retirement-focused tool, the government doesn’t allow subscribers to withdraw their money easily. However, in case an individual requires money and if he/she has been investing in the scheme for at least three years, then the individual may withdraw up to 25% for certain purposes. These special purposes are:

- Children’s wedding

- Children’s higher studies

- Building/buying a house or medical treatment of self/family, among others.

Furthermore, one can make a withdrawal for up to three times (with a gap of five years) in the entire tenure. These restrictions are only imposed on Tier-I accounts and not on Tier-II accounts.

Thus, the three times withdrawal in five years restriction is not applicable to those individuals who have subscribed to the Tier-II accounts.