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