AMN
The subscribers of National Pension System (NPS) will now have the option to partially withdraw funds from their accounts for pursuing higher education or setting up new business.
The decision was taken at the board meeting of Pension Fund and Regulatory Development Authority (PFRDA) in New Delhi. NPS is government’s flagship social security programme.
Finance Ministry in a release said, partial withdrawals will now be allowed to NPS subscribers who wish to improve their employability or acquire new skills by pursuing higher education and acquiring professional and technical qualifications.
The board has also decided to increasing the cap on equity investment in active choice category to 75 percent from current 50 percent for private sector subscribers of NPS.
However, the option of increasing investment in equity will be available to subscribers till the age of 50 years. The PFRDA has taken this decisions in pursuance of an announcement in the Union Budget.
At present, NPS and Atal Pension Yojana, have a cumulative subscriber base of over two crores 13 lakh with total asset under management of over two lakh 35 crore rupees.