NPS Tier-1 partial withdrawal rules and process - citizen guide 2026

If you have an NPS Tier-1 account and need money for a child's education, a house, a medical emergency, or a wedding, you can take out up to 25 percent of your own contributions without closing the account, provided you meet the conditions below.

NPS Tier-1 is the locked retirement account under the National Pension System. A partial withdrawal lets a subscriber take out part of the corpus mid-tenure for a defined need, while the account stays active and keeps growing. It is not the same as full exit at retirement.

The National Pension System is regulated by the Pension Fund Regulatory and Development Authority, a statutory body created under the Pension Fund Regulatory and Development Authority Act, 2013. Partial withdrawals are governed by the PFRDA Exits and Withdrawals under the National Pension System Regulations, 2015, as amended.

On tax, Section 10(12B) of the Income-tax Act, 1961 exempts a partial withdrawal of up to 25 percent of the employee's own contribution, subject to PFRDA conditions. As the official commentary on the section puts it, the exemption is available on partial withdrawals up to 25 percent of the self-contribution, excluding the employer's contribution.

1. Confirm you have completed at least three years as an NPS subscriber and that your reason matches one of the six permitted purposes.
2. Log in to your CRA portal, Protean CRA or KFintech CRA, using your PRAN and password.
3. Open the partial withdrawal request menu and select the qualifying purpose.
4. Enter the amount, keeping it within 25 percent of your own contributions in that account.
5. Upload the supporting documents and the self-declaration the portal asks for.
6. Authenticate with the OTP sent to your registered mobile and email.
7. The request goes to your POP or nodal office and is processed through the CRA system, after which funds reach your registered bank account.

• PRAN card or PRAN number and CRA login credentials
• Self-declaration stating the qualifying purpose
• Proof of purpose, for example an admission or fee letter, a medical or hospital document, a property agreement, or a wedding card
• Cancelled cheque or bank passbook page matching your registered bank account
• Identity proof if your nodal office or POP asks for fresh verification

• Counting the employer contribution. The 25 percent cap applies only to your own contributions in that account.
• Applying before completing three years of subscription.
• Claiming a reason outside the six permitted purposes, which gets the request rejected.
• Ignoring the four-year gap rule and trying for a fifth withdrawal before age 60.
• Leaving your registered bank or mobile details outdated, which stalls the payout and the OTP step.

You must have been an NPS subscriber for at least three years before you can make a partial withdrawal from your Tier-1 account.

Up to 25 percent of your own contributions in that specific account. The employer's contribution is not counted in this 25 percent.

You can make a partial withdrawal up to a maximum of four times from each Individual Pension Account before attaining age 60 or before superannuation, with a minimum gap of four years between successive withdrawals.

Six purposes qualify: higher education of children, marriage of children, purchase or construction of a residential house or flat, medical treatment of self, spouse, children or parents, expenses arising from disability or incapacitation, and settlement of a financial obligation against a lien or charge on the account.

A partial withdrawal of up to 25 percent of your own contribution is exempt from tax under Section 10(12B) of the Income-tax Act, 1961, subject to PFRDA conditions.

Yes. You raise the request through your CRA portal, Protean or KFintech, with OTP authentication. It is then processed by your POP or nodal office through the CRA system.

No. The Tier-1 account stays active and continues to earn returns. A partial withdrawal is separate from full exit at retirement.

• NPS Trust - Partial Withdrawal rules
• Pension Fund Regulatory and Development Authority - PFRDA
• NPS Trust - PFRDA Exits and Withdrawals under NPS Regulations, 2015
• Section 10(12B) NPS partial withdrawal exemption - commentary

• Hold multiple NPS schemes under one PRAN (MSF)

• The RTI Playbook
• EPS-95 minimum pension application
• Gratuity recovery from your employer
• Income tax refund delay
• ITR rectification under Section 154
• Apply for a PAN card online

• NPS charges cut from July 2026: new CRA fee rules

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