NPS - Nirav Karkera

Guidelines to invest & exit from NPS

1. Guidelines for investment in NPS.

  • An investor can open his NPS account with minimum INR.500.
  • The investor has to invest minimum INR.1000 to keep his NPS account active

2. Guidelines for exit/withdrawal from NPS

  • A contributor can exit the scheme after 10 years of opening or at attaining the age of 60 years, whichever is earlier.

3. Following are the provisions for redemption:

If exit after 10 years but before 60 years of age:

  • Only 20% of the corpus can be redeemed lumpsum; balance to be invested in an annuity
  • If corpus = INR 1 Lakh, the entire amount can be redeemed lumpsum

If exit after 60 years of age

  • Up to 60% can be redeemed lumpsum; balance to be invested in an annuity
  • If corpus = INR 2 Lakh, the entire amount can be redeemed lumpsum

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