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    Question

    What is the minimum duration for which a non-government

    subscriber should be registered under NPS, to be eligible to withdraw funds from NPS pre-maturely?  
    A 3 years Correct Answer Incorrect Answer
    B 4 years Correct Answer Incorrect Answer
    C 5 years Correct Answer Incorrect Answer
    D 7 years Correct Answer Incorrect Answer
    E 10 years Correct Answer Incorrect Answer

    Solution

    The withdrawal rules for pre-mature wi th dr a wal from NPS for non-government subscribers are as follows:   Pre-mature Exit means e xit before 60 years or age of Superannuation .   Limit for withdrawal of entire corpus as lump sum - ₹ 2.50 Lakh on the date of initiation of the pre-mature exit request   Non-Government Sector - Pre-mature Exit  applicable in case of voluntary closure of PRAN by the subscriber, subject to subscriber having been registered under NPS for 5 years.  

    1. 1. If the corpus on the date of initiation of the pre-mature exit request is equal to or less than ₹ 2.50 lakh, entire corpus can be withdrawn as lump sum.  
    1. 2. If the corpus on the date of initiation of the pre-mature exit request is higher than ₹ 2.5 lakh, at least 80% of the corpus has to be mandatorily utilized for purchase of Annuity providing periodical pension to the Subscriber. The balance corpus after utilization for purchase of annuity is payable as lump sum to the Subscriber.  

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