Why in the news
PFRDA amended the PFRDA (Exits and Withdrawals under the NPS) Regulations, 2025, loosening NPS withdrawal, exit and retirement rules.
Loans against NPS
- Regulated lenders may take a lien or charge on a subscriber’s pension account.
- Cap: 25% of the subscriber’s own contribution, matching partial withdrawal limits.
- The old blanket bar on pledging NPS benefits is partly relaxed; detailed guidelines will follow.
Partial withdrawals
| Purpose | Status |
|---|
| House purchase or construction | Retained; one-time only |
| Medical treatment of subscriber, spouse, children, parents | Widened; critical-illness list removed |
| Skill development; start-up or venture | Removed |
| Settling a loan taken against NPS lien | New |
Non-government exits
- Five-year minimum subscription scrapped under the All Citizen Model and MSF.
- Vesting: 15 years, a higher scheme period, or age 60, whichever is earlier.
- Lump sum up to 80%; minimum annuity 20% (earlier 40%).
Small corpus
| Corpus | Options |
|---|
| Up to ₹8 lakh | Full lump sum, SLW, SUR or other approved choice |
| ₹8–12 lakh | ₹6 lakh lump sum; rest in SUR for at least six years, annuity or other approved options |
Exam angle
- Key numbers: 25% lien cap, 80:20 split, ₹8 lakh and ₹12 lakh thresholds.