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NPS Subscribers can do partial withdrawal for COVID-19 treatment

In an official circular, PFRDA addressed all the subscribers and mentioned that the decision has been made in view of the government’s decision to declare COVID-19 as a pandemic.

Apr 10, 2020 17:26 IST
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The Pension Fund Regulatory and Development Authority of India (PFRDA) announced that National pension System (NPS) subscribers can partially withdraw the amount for COVID-19 treatment. The announcement was made on April 10, 2020.

In an official circular, PFRDA addressed all the subscribers and mentioned that the decision has been made in view of the government’s decision to declare COVID-19 as a pandemic.

Declaring COVID-19 as a life-threatening disease, the partial withdrawal is allowed to fulfill the financial needs of the subscribers.  

Key Highlights:

PFRDA declared that the partial withdrawal will be permitted for COVID-19 treatment.

The withdrawals will cover the illness of the subscriber, children, legally wedded spouse, children which will also include the legally adopted child and dependent parents.

Those working in State government, Central government establishments, as well as working in corporates across India and are members of the NPS, can enjoy this benefit.

The circular by PFRDA also mentioned that the subscribers of Atal Pension Yojana (APY) will not be able to enjoy this benefit.

Atal Pension Yojana (APY) and National Pension System (NPS):

The two flagship schemes are run by The Pension Fund Regulatory and Development Authority of India (PFRDA).

National Pension System (NPS) is the scheme that is specifically for the State Governments, Central Governments, corporates, and autonomous bodies.

While Atal Pension Yojana (APY) scheme is mainly for the pension needs of those who are employed in an unorganized sector.

The majority of India’s workforce is employed in an Unorganised sector. The number of subscribers under APY and NPS was 3.46 crore, as on March 31. Out of this, as per the data from PFRDA, the number of subscribers under APY was 2.11 crore.  

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