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    Question

    In which of the following cases can a NPS subscriber

    withdraw 100% amount without purchasing an annuity?
    A If the accumulated pension wealth is up to Rs.10 lakh Correct Answer Incorrect Answer
    B If the accumulated pension wealth is up to Rs.8 lakh Correct Answer Incorrect Answer
    C If the accumulated pension wealth is up to Rs.7.5 lakh Correct Answer Incorrect Answer
    D If the accumulated pension wealth is up to Rs. 6 lakh Correct Answer Incorrect Answer
    E If the accumulated pension wealth is up to Rs.5 lakh Correct Answer Incorrect Answer

    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.   The withdrawal /exit rules from NPS are summarized below:  

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