InvestorQ : Is premature withdrawal allowed in Tier-I National Pension Scheme (NPS) account?
divya Sing made post

Is premature withdrawal allowed in Tier-I National Pension Scheme (NPS) account?

Answer
user profile image
Nishita Gala answered.
1 year ago


Yes, Tier-I NPS accounts allow premature withdrawal. However, there are certain conditions to be met in order to withdraw one’s contribution.

In a Tier-I account, an investor can partially withdraw up to 50% of the contributed funds in case he/she has completed 25 years of service.

Furthermore, the Tier-I account allows for premature withdrawals, for those individuals who have completed 15 years of service, but only in the form of repayable advance. Additionally, these withdrawals are only allowed in case of any unforeseen events such as an emergency or a critical illness.

The only non-emergency situation wherein NPS Tier-I fund can be withdrawn is when the investor is buying or constructing his/her first house.