1) Can I partially withdraw money from the NPS Vatsalya account before 18 years?
Yes, partial withdrawals from your NPS Vatsalya account are allowed to address contingency situations. The permitted reasons and conditions for partial withdrawal include:
- Education of the Minor Subscriber: Funds can be withdrawn for educational expenses.
- Treatment of Specified Illnesses: If the minor subscriber faces specific health conditions.
- Disability: If the minor subscriber has a disability of more than 75%.
2) What is the maximum amount that can be withdrawn?
You can withdraw up to **25% of contributions** (excluding returns).
3) When is this facility available?
This facility can be availed after a minimum of 3 years from the date of opening the account. It is available on a declaration basis.
4) How many times can partial withdrawals be made?
Partial withdrawals can be made a maximum of three times until the subscriber reaches 18 years of age.
5) What happens when a subscriber exits the pension plan at age 18?
Upon reaching 18 years of age, subscribers can exit their pension plan.
6) How is the accumulated corpus utilized upon exit?
At least 80% of the accumulated corpus must be used to purchase an annuity. The remaining balance is provided as a lump sum.
7) Is there an option to withdraw the entire accumulated pension wealth?
Yes. If the accumulated corpus is Rs 2,50,000 or less or if annuity purchase is unavailable from empaneled Annuity Service Providers (ASPs), subscribers can withdraw the entire amount.
8) What if annuity options are not available?
Subscribers can withdraw the complete accumulated pension wealth if annuity services are not available from listed ASPs.
9) What happens in case of death before 18 years?
In the event of the minor subscriber's death, the entire accumulated corpus will be paid to the guardian.
10) What should be done if the guardian registered under the account passes away?
If the guardian dies, another guardian must be registered. Submit the KYC documents as specified by the PFRDA periodically.
11) Can a legally appointed guardian continue the account if both parents die?
Yes, the legally appointed guardian can continue the account. Contributions can be made or not, as per choice.
12) What happens when the minor subscriber turns 18?
Upon reaching 18 years of age, the subscriber can choose to exit from the scheme.
Grievance Redressal
13) Whom should I approach if I have a complaint/grievance?
For resolving subscriber grievances, the Pension Fund Regulatory and Development Authority (PFRDA) has notified the PFRDA (Redressal of Subscriber Grievance) Regulations, 2015.
An online platform, the Central Grievance Management System (CGMS), is available for subscribers to lodge grievances. Subscribers can access this by logging into their NPS account.
14) How quickly will my complaint be resolved?
A complaint/grievance must be resolved by the concerned intermediary as early as possible. The maximum period for resolution is 30 days from the receipt of the complaint.
15) What if I am not satisfied with the resolution provided?
If a subscriber is not satisfied with the resolution, they can escalate the grievance to the next higher level.
The escalation matrix is as follows:
Intermediary -> NPS Trust -> Ombudsman -> PFRDA -> SAT (Securities Appellate Tribunal)
For further inquiries, always refer to the official documentation from PFRDA and NPS Trust or Protean Blogs for the most accurate and up-to-date information.
More FAQ on NPS Vatsalya related to Opening of NPS Vatsalya Account
More FAQ on NPS Vatsalya related to Accumulation under NPS Vatsalya Account
- Story by Bruhadeeswaran R.
