As per PFRDA Regulations, different criteria are applicable depending upon the situation
when the account holder chooses to exit from NPS.
Superannuation
When a subscriber reaches the age of superannuation / attaining 60 years of age,
he or she will have to use at least 40% of his /her accumulated pension corpus to
purchase an annuity that would provide a regular monthly pension. The remaining
funds can be withdrawn as lump sum.
If the total accumulated pension corpus is less than or equal to Rs. 5 lakh, the
NPS account holder can opt for 100% withdrawal of lump sum.
Pre-mature Exit
In case of pre-mature exit (exiting before attaining 60 years of age) from NPS,
at least 80% of the accumulated pension corpus of the account holder has to be utilized
for the purchase of an annuity that would provide a regular monthly pension. The
remaining funds can be withdrawn as lump sum. However, the account holder can exit
from an NPS, only after completing 5 years.
The subscriber can opt for 100% withdrawal of lump sum, if the total corpus is less
than or equal to Rs. 2.5 lakh.
Death Of Subscriber
The entire accumulated pension corpus (100%) would be paid to the nominee / legal
heir of the subscriber following the death of the account holder.