Due to the coronavirus pandemic, the new NPS withdrawal process needs to be adopted on an exception basis and the one-time exemption is allowed only till 30th June 2020, pension regulator said
NPS withdrawal, both lump-sum and partial, process has been eased due to the coronavirus pandemic. NPS or National Pension Scheme subscribers who want to withdraw funds from their account are required to submit duly filled-up withdrawal forms along with supporting documents to the associated nodal officers or point of presence service providers for processing their request.
But due to the current Covid-19 pandemic situation, considering that the subscribers may not be in a position to submit the physical exit documents, the nodal offices or point of presence service providers have been advised to accept the scanned and self-certified images of documents through digital means as a special case and process their requests. This was said by pension regulator PFRDA (Pension Fund Regulatory and Development Authority) in a recent circular.
The requests can be received from the registered email ids of subscribers/nodal offices, PFRDA said.
This process needs to be adopted on an exception basis and the one-time exemption is allowed only till 30th June 2020. The nodal offers/POPs need to ensure that duly authorized and completed documents reach the respective CRA by end of 31st July, 2020.
After submission of withdrawal documents by NPS subscribers, it is the responsibility of the nodal officers/POPs to check the genuineness of the documents and verify the identity of the subscriber before authorizing their withdrawal requests in the CRA or central record keeping system.
Upon authorization, withdrawal requests are executed in the CRA system to allow lump sum withdrawal and the subscribers information is shared with the annuity service provider for issuing annuity.z
Alternatively, subscribers can also use the online facility to upload withdrawal-related documents in the CRA system while initiating online withdrawal request. "The documents uploaded help in instantaneous processing of lump sum and enable ASP (annuity service providers) to issue annuity based on the documents already uploaded," PFRDA said.
In April, PFRDA had allowed NPS subscribers to withdraw funds from their NPS accounts to meet any expenses related to the treatment of the highly contagious coronavirus disease.
PFRDA has also allowed partial withdrawal to meet expenses related to Covid-19 treatment as the pandemic falls under the category of critical illness which is life threatening in nature.
The partial withdrawals shall be permitted to fulfill financial needs of the subscribers, if required to him/her against the request placed for partial withdrawals towards treatment of the illness of subscriber, his legally wedded spouse, children, including a legally adopted child or dependent parents, as per the regulations, PFRDA said in the circular.