• The National Pension Scheme (NPS) is a voluntary retirement savings scheme introduced by the Government of India. While the scheme primarily focuses on long-term retirement planning, it does allow for early withdrawals under certain circumstances, such as for medical emergencies, higher education, or the marriage of children.
• As per the NPS guidelines, an individual can make an early cash withdrawal after completing 3 years from the date of opening the NPS account. However, these withdrawals are subject to certain conditions and limits, such as the amount being withdrawn for specific purposes.
• Early withdrawals from NPS are generally allowed for up to 25% of the total contributions made by the subscriber, and the total amount withdrawn cannot exceed the prescribed limits.
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