InvestorQ : What is a one-way switch with respect to NPS?
priya Shah made post

What is a one-way switch with respect to NPS?

Answer
user profile image
Sadaf Khan answered.
1 year ago


A ‘one-way switch’ is a facility provided by the government allowing an NPS subscriber to transfer funds from his/her Tier-II NPS account to Tier-I NPS account.

Under the one-way switch, the subscriber has the option to transfer funds from his/her Tier-II NPS account to Tier-I NPS account. Please note, the vice-versa is not allowed i.e., one cannot transfer funds from Tier-I to Tier-II account is not allowed.

To avail this facility, the subscriber must submit a written request at its parent Points of Presence- Service Providers (POP-SP). The POP/POP-SP will execute the ‘one-way switch request’ in the Central Recordkeeping Agency system for the subscribers associated with them.

If an NPS subscriber is not able to fulfil the minimum contribution requirements of Tier-I NPS account in a particular year, then he will be able to use this one-way switch to comply with this requirement.