Question
In which of the following cases can a NPS subscriber
withdraw 100% amount without purchasing an annuity?Solution
As per the withdrawal rules , full withdrawal is allowed if the accumulated pension wealth in the Permanent Retirement Account of the subscriber is equal to or less than Rs.5 lakh. Otherwise, at least 40% out of the accumulated pension wealth of such subscriber shall be mandatorily utilised for purchase of annuity providing for a monthly or any other periodical pension. Â The withdrawal /exit rules from NPS are summarized below: Â
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