For National Pension System (NPS) subscribers facing a financial crunch in 2026, the PFRDA has simplified the exit route. You can now withdraw a portion of your corpus for specific life events using a simple Self-Declaration, without the immediate hassle of uploading documentary proofs.
Updated on: 17 January 2026 | Verified against PFRDA Master Circular (Exit & Withdrawals).
NPS Partial Withdrawal Rules 2026: 25% Limit & Self-Declaration Guide
Quick Answer
You can withdraw money from your NPS Tier-1 account before age 60, subject to strict limits:
• Limit: Max 25% of your Own Contribution (Principal only).
• Service Condition: Minimum 3 Years of membership.
• Frequency: Maximum 3 times during the entire service.
• Tax: The withdrawn amount is 100% Tax-Free.
Risk: The “25% of Corpus” Myth
Do NOT calculate 25% on your total balance.
Example:
• Total Corpus: ₹10 Lakh (₹4L Your Contribution + ₹4L Govt Contribution + ₹2L Interest).
• Eligible Amount: 25% of ₹4 Lakh = ₹1 Lakh Only.
• You cannot touch the Govt contribution or the interest component.
Allowed Reasons (Self-Declaration Valid)
Under the new PFRDA guidelines, you can claim withdrawal for these specific reasons by submitting a self-declaration form:
| Reason | Conditions |
|---|---|
| Higher Education | For children (including legally adopted). |
| Marriage | For children (including legally adopted). |
| House Purchase/Construction | Only if you don’t already own a residential house (except ancestral). |
| Medical Treatment | For Critical Illnesses (Cancer, Kidney Failure, Covid-19, etc.) for Self/Spouse/Parents/Kids. |
| Skill Development | For self-development/re-skilling activities. |
The “Self-Declaration” Process
To ease the burden on subscribers, PFRDA now allows “Paperless” processing for the above reasons.
- Step 1: Login to CRA (NSDL/Protean or KFintech).
- Step 2: Select “Partial Withdrawal” from the menu.
- Step 3: The system automatically calculates the “Withdrawable Amount” (25% of own contribution).
- Step 4: Select the Reason and check the “Self-Declaration” box.
- Step 5: Authenticate via OTP (Aadhaar/Mobile). Funds are credited to your bank account (T+2 days).
Frequently Asked Questions
Can I withdraw if I have less than 3 years of service?
No. The minimum lock-in period is strictly 3 years from the date of joining NPS. No partial withdrawal is permitted before this timeline.
Does partial withdrawal affect my pension?
Yes. Whatever you withdraw now reduces your final compounding corpus. It is advisable to use this option only in extreme emergencies, as the withdrawn amount will not generate returns for your old age.
🇮🇳 हिंदी में सारांश (Summary in Hindi)
NPS से पैसा निकालने के नियम 2026
1. कितना पैसा: आप अपनी जमा राशि (Own Contribution) का केवल 25% हिस्सा निकाल सकते हैं। सरकार द्वारा जमा पैसे को नहीं छू सकते।
2. शर्तें: NPS खाता कम से कम 3 साल पुराना होना चाहिए। पूरी नौकरी में केवल 3 बार पैसा निकाल सकते हैं।
3. आसान नियम: अब शादी, पढ़ाई या घर के लिए पैसा निकालने पर सबूत (Document) अपलोड करने की जरूरत नहीं है। केवल “Self-Declaration” (स्व-घोषणा) देकर ऑनलाइन पैसा मंगा सकते हैं।
