“We have decided that subscribers can withdraw up to 25% of the corpus citing COVID-19 as a reason. The necessary circulars will be issued shortly,” Bandyopadhyay told Cogencis. Currently, subscribers of National Pension System are allowed to withdraw up to 25% of their respective contributions only against specified reasons like for purchasing a house or for treatment of critical illnesses. Subscribers can also withdraw for higher education and marriage of children.
In March, Finance Minister Nirmala Sitharaman announced that Employees’ Provident Fund Organisation regulations will be amended to include pandemic as one of reasons to allow non-refundable advance of 75% of the amount or three months of wages, whichever is lower. India has imposed a 21-day nationwide lockdown to break the chain of transmission of the disease.
The number of coronavirus cases has steadily increased in the country with the total number of cases at 5,194 and 149 deaths so far. As on Feb 28, the corpus of National Pension System stood at 4.10 trln rupees, belonging to 13.29 mln subscribers. To process the partial withdrawal, the intermediary will require relevant documents related to the reason for which the withdrawal is being made, a senior official at PFRDA said.