NPS Final Exit, Annuity or Lump-Sum Withdrawal Delayed? Here Is What to Do

Who this guide is for

This guide is for any NPS subscriber — government or private sector — who has reached the exit stage (whether on superannuation, voluntary retirement, or premature exit) and is now facing a delay in receiving their lump-sum amount, or in the Annuity Service Provider completing the annuity policy.

It is also useful for subscribers who have not yet initiated exit but want to understand the process and potential sticking points before they do — so delays can be avoided from the start.

Key terms used throughout:

• PRAN — Permanent Retirement Account Number. Your unique 12-digit NPS account identifier. You need it for every step.
• CRA — Central Recordkeeping Agency. The agency that maintains your NPS account records. Three CRAs operate in India: Protean eGov Technologies (formerly NSDL e-Gov), KFintech, and CAMS. Your CRA depends on the entity that opened your NPS account.
• CGMS — Central Grievance Management System. The online complaint system run by each CRA for NPS grievances.
• ASP — Annuity Service Provider. The life insurance company you choose to purchase your mandatory annuity from at exit. ASPs are Indian life insurance companies appointed by PFRDA.
• Nodal Office / POP — For government employees, the Nodal Office is your employer's designated office that authorises NPS transactions. For private/individual subscribers, a Point of Presence (POP) such as a bank plays this role.
• NPS Trust — The statutory body that holds the NPS assets in trust. It also functions as the second-level grievance body above the CRA.
• PFRDA — Pension Fund Regulatory and Development Authority. The regulator for NPS. The highest escalation authority short of the Securities Appellate Tribunal.

What you can do this weekend

Friday evening

Download your PRAN transaction statement from your CRA portal (Protean at cra.nps-proteantech.in, or KFintech at cra.kfintech.in, or CAMS at camsnps.com). Check:

• That your name, date of birth, and address exactly match your KYC documents (Aadhaar, PAN).
• That your registered bank account details match the account where you expect the lump-sum credit.
• The current status of your exit request — whether it shows as Initiated, Pending Authorisation, Under Processing, or Rejected.

If you have not yet initiated exit, also check that your nominee details are current. Missing or outdated nominees can create problems at exit.

Saturday

Based on what you found Friday:

• If the request is sitting at Pending Authorisation, call or write to your Nodal Office (government employees) or POP (all others). Give them the pending request reference number and ask for a specific date by which they will authorise it.
• If a KYC or bank-account mismatch is showing, prepare Form S2 (subscriber details correction form) with supporting documents and submit it to your Nodal Office or POP. Until this is corrected, the exit will not go through cleanly.
• If the request has been authorised and you are waiting for the lump-sum credit for more than 10 working days, draft your CGMS grievance (use the template in this guide) and keep it ready.
• If you have not yet selected an ASP and the portal is prompting you, go to the CRA portal and review the list of empanelled ASPs. The list displayed will be filtered based on your age and corpus — compare annuity rates across at least two or three providers before choosing.

Sunday

• Submit your CGMS grievance online if the delay has crossed 15 working days post-authorisation. Note the token number.
• Check the PFRDA Pension Sahayak portal at pensionsahayak.pfrda.org.in and confirm you can log in with your PRAN — this will be your escalation route if CGMS does not work.
• If you have a complaint that is already on CGMS and has crossed 30 days without resolution, use the escalate option to send it to NPS Trust.
• Gather all CGMS token numbers, dates, and any email/written correspondence for your records.

Documents and evidence checklist

Step-by-step action plan

Step 1 — Understand what type of exit you are doing

NPS offers two main exit types. Normal exit happens when you reach age 60 or your retirement age (also called superannuation exit for government employees). Premature exit happens before age 60 for reasons such as voluntary retirement, resignation, or certain hardships. The rules for how much you can withdraw as a lump sum and how much must be used to buy an annuity differ between these two types, and also differ between government and non-government subscribers. Confirm which category applies to you before initiating exit, so you know what to expect.

For non-government subscribers, the December 2025 PFRDA amendment significantly changed the exit structure. For those with a corpus above ₹12 lakh doing a normal exit, up to 80% can now be taken as lump sum with a minimum 20% used for annuity. For corpus of ₹8 lakh or less, 100% lump sum withdrawal is allowed. These changes apply to the All Citizen and Corporate Sector models. Government sector rules are different — check with your Nodal Office for the applicable framework.

For premature exits (before age 60), the annuity requirement is higher — you must use a larger share for annuity unless the corpus is below the threshold for full withdrawal. Check the current rules on the PFRDA website as the exact thresholds may be updated periodically.

Step 2 — Verify and update your PRAN records before initiating exit

Log into your CRA portal with your PRAN and check every detail carefully:

• Your name as it appears in the PRAN record must exactly match your PAN and Aadhaar. Even a minor spelling difference will cause the exit to be held up.
• Your date of birth must match across documents. A mismatch here is a very common reason for rejection.
• Your registered bank account must be active and the details (account number, IFSC, account holder name) must be current. If you have changed banks, update this before initiating exit using the process available in your CRA portal.
• Your registered mobile number and email must be current — OTPs and exit confirmations are sent to these.

If any correction is needed, submit Form S2 through your Nodal Office or POP. Allow time for the correction to be processed before initiating the exit request.

Step 3 — Initiate the exit request online through the CRA portal

Log into your CRA portal and navigate to Manage My Withdrawal > Exit from NPS > Initiate request. You will need to:

• Specify the percentage you want as lump sum and the percentage for annuity (within the applicable regulatory limits).
• Select your preferred Annuity Service Provider from the dropdown list. The ASPs shown will be filtered based on your age and corpus — these are PFRDA-empanelled life insurance companies. Compare the annuity rates and payout options offered by at least a few providers before choosing. The decision is generally irreversible once the annuity is purchased.
• Select the annuity scheme or plan offered by your chosen ASP.
• Enter your marital status and spouse details if applicable (relevant for joint-life annuity options).
• Upload your KYC documents: identity proof, address proof, PAN copy, PRAN card copy, and bank account proof.
• Complete authentication via OTP sent to your registered mobile and email, or via eSign using Aadhaar.

If you are unable to complete the online process — for example, if you do not have access to the registered mobile number for OTP — you can fill the physical withdrawal form and submit it to your Nodal Office or POP along with all KYC documents and bank proof. The form is available on your CRA portal.

Step 4 — Follow up with the Nodal Office or POP for authorisation

After you submit the exit request, it goes to your Nodal Office (for government employees) or POP (for others) for authorisation. This step is often the biggest source of delay. Your request stays in a pending state until the Nodal Office or POP acts on it.

If the authorisation has not come through within a week, contact your Nodal Office or POP directly. Give them your PRAN, your exit request reference number, and the date you submitted it. Ask for a specific date by which they will authorise it and get that commitment in writing (email).

Government employees: if the Nodal Office is unresponsive, the Head of Office or DDO is the right person to escalate to within your organisation.

Step 5 — Track the lump-sum credit and ASP communication

After the Nodal Office authorises the request, the CRA processes the lump-sum credit to your registered bank account. Track this on your CRA portal. If the lump-sum has not been credited after 15 working days from authorisation, something has gone wrong — either a bank account mismatch is holding it up, or there is a CRA system issue.

Separately, your chosen Annuity Service Provider will contact you to complete their own KYC and annuity issuance formalities. The CRA transmits your details to the ASP, and the ASP will typically reach out by phone and/or email. If you do not hear from the ASP within two to three weeks, contact them directly with your PRAN and annuity proposal number.

Step 6 — Raise a CGMS grievance if the delay continues

If the lump-sum is delayed beyond 15 working days after authorisation, or if the ASP has not issued your annuity for an unreasonable period, raise a formal grievance on your CRA's CGMS portal. The steps are:

• Log into your CRA portal and go to the Grievance or Complaint section.
• Select the relevant grievance category — withdrawal delay or annuity delay.
• Provide your PRAN, exit request reference number, dates, and a clear description of the delay.
• Submit. Note the grievance token number immediately.

Alternatively, you can call the NPS toll-free helpline. Protean operates on 1800 210 0080 and for APY on 1800 889 1030. Check your CRA's website for the current helpline number as these may be updated.

The CRA is required to resolve the grievance within 30 days from receipt.

Step 7 — Escalate to NPS Trust if unresolved after 30 days

If your CGMS grievance has not been resolved in 30 days, or if you are not satisfied with the resolution, escalate to NPS Trust. You can do this through the escalate option on the CGMS portal, or by submitting a grievance form directly on the NPS Trust website at npstrust.org.in. Their toll-free helpdesk is 18005706778. NPS Trust is required to resolve escalated grievances within 21 days.

Step 8 — Escalate to PFRDA as the final authority

If NPS Trust also does not resolve within 21 days, your next step is PFRDA. Use the Pension Sahayak grievance portal at pensionsahayak.pfrda.org.in. You can also write directly to the PFRDA Ombudsman at [email protected] or at the address: Ombudsman, PFRDA, E-500, Fifth Floor, Tower E, World Trade Center, Nauroji Nagar, New Delhi – 110029. Include all previous complaint token numbers and a clear timeline. If still dissatisfied with the Ombudsman's decision, a further appeal to the Designated Member (Grievances) at PFRDA headquarters is available, and the final legal recourse is the Securities Appellate Tribunal.

Escalation ladder

Copy-paste complaint template

Replace the text in square brackets with your own details before sending.

When RTI can help

PFRDA is a public authority under the RTI Act, 2005 — it is a statutory body established by an Act of Parliament. NPS Trust is also a public authority. This means you can file an RTI application to either of them and get a response within 30 days.

Useful RTI questions to ask PFRDA:

• What is the current status of exit request reference number [X] linked to PRAN [X] filed on [date], and what is the reason for any delay?
• What action has PFRDA taken on my grievance submitted to Pension Sahayak on [date] with token number [X]?
• What are the regulatory timelines prescribed for processing a final exit withdrawal from the date of Nodal Office authorisation to the date of lump-sum credit?
• Please provide copies of all orders, instructions, and circulars issued by PFRDA to CRAs regarding the processing of exit withdrawals in [year].
• What enforcement action has PFRDA taken against [CRA name] for delayed processing of subscriber exit requests in the period [dates]?

RTI is particularly powerful if you suspect a systemic delay at the CRA or if PFRDA's own grievance system is not responding. A filed RTI application forces the public authority to respond formally within 30 days. See our guide on how to file an RTI online and, if needed, how to file a first appeal under Section 19.

If you are a government employee and believe the Nodal Office is at fault for delayed authorisation, you can also file an RTI with the relevant government ministry or department to get information about the processing of your case. The CPGRAMS portal is also available for central government employees to lodge complaints against their department.

When RTI will not help

The CRA (Protean, KFintech, CAMS) is a private company — it is not a public authority under the RTI Act. You cannot file an RTI directly against the CRA. Your route to hold the CRA accountable is the CGMS grievance system and escalation to PFRDA, not RTI.

Similarly, the Annuity Service Provider (ASP) is a private life insurance company and is not subject to the RTI Act. For delays on the ASP side, your recourse is: direct complaint to the ASP, then escalation via the CRA CGMS, then NPS Trust, and separately, a complaint via the IRDAI Bima Bharosa portal since the ASP is an IRDAI-regulated insurer. See our guide on the banking and financial ombudsman complaint process for analogous escalation steps.

RTI also cannot compel anyone to process your withdrawal faster in a direct enforcement sense — it gets you information and creates a record, which combined with CGMS and Pension Sahayak escalations is a powerful combination. The Practical Guides hub has more tools for financial disputes.

Common mistakes to avoid

• Initiating exit with outdated bank account details. The lump-sum credit will fail if the bank account in your PRAN records is closed or the IFSC is wrong. Update this before you initiate exit.
• Not tracking the Nodal Office authorisation step. Many subscribers assume that once they submit the exit request online, it will automatically be processed. It will not — the Nodal Office or POP must explicitly authorise it. Follow up proactively.
• Choosing an ASP without comparing rates. Annuity rates vary between PFRDA-empanelled ASPs. Once you purchase an annuity, you generally cannot switch the ASP. Spend time comparing the options shown to you at the exit stage.
• Waiting too long before complaining. Many subscribers wait months before raising a formal CGMS complaint. The 30-day CRA resolution clock starts only when you raise the complaint — start the complaint process promptly, around the 15-working-day mark after authorisation.
• Not noting grievance token numbers. Every complaint on CGMS generates a token number. Keep a record of all token numbers and dates — you will need them at every escalation level.
• Assuming the ASP will contact you automatically. The ASP is supposed to contact you after the CRA transmits your details, but this does not always happen promptly. If you have not heard from your chosen ASP within two to three weeks, contact them first.
• Mixing up NPS with EPF/EPS claims. NPS and EPFO are entirely separate systems with different processes, regulators, and complaint channels. If you have both, keep the paperwork and complaint threads completely separate. See our guide on EPF and NPS withdrawal disputes for more on this.
• Submitting documents with a name or date-of-birth mismatch. If your name on your PAN differs from your name on your Aadhaar by even a word, this can block exit processing. Sort out name mismatches across identity documents before you reach the exit stage — our guide on EPFO KYC and claim rejections covers the general pattern of how these mismatches cause problems.