National Pension System (NPS): All you need to know about the withdrawal of money
A subscriber can exit from National Pension System (NPS) only in accordance with PFRDA (Exits and Withdrawals under NPS) Regulations, 2015; the subscriber is required to purchase an annuity providing for a monthly pension
A subscriber can exit from National Pension System (NPS) only in accordance with PFRDA (Exits and Withdrawals under NPS) Regulations, 2015 which are notified on 11 May 2015. Pension Fund Regulatory and Development Authority (PFRDA) is a statutory body which is entrusted with the job of pension regulation in India.
At the time of exit from NPS for reasons other than the death of the subscriber, the subscriber is required to purchase an annuity providing for a monthly pension to the subscriber from an Annuity Service Provider empanelled with PFRDA. In the Indian context, annuities in simple terms, are financial instruments that offer a monthly/quarterly/annual pension at a guaranteed rate for the period you choose for a given purchase price.
Annuity Service Providers are IRDA licensed and regulated Life Insurance companies, transacting annuity business in India and who are empanelled by PFRDA for servicing the annuity requirements of the NPS subscribers. At present, the following (12) ASPs are providing the Annuity services to NPS subscribers and the list of ASPs is as follows:
Name of Insurance companies
-- SBI Life Insurance Co. Ltd
-- Life Insurance Corporation of India
-- Star Union Dai-ichi Life Insurance Co. Ltd
-- ICICI Prudential Life Insurance Co. Ltd
-- HDFC Life Insurance Co Ltd.
-- IndiaFirst Life Insurance Co Ltd
-- Edelweiss Tokio Life Insurance Co. Ltd
-- Bajaj Allianz Life Insurance Co Ltd.
-- Canara HSBC Oriental bank of Commerce Life Insurance co Ltd.
-- Kotak Mahindra Life Insurance Co Ltd.
-- Tata AIA Life Insurance Company Limited
-- Max Life Insurance Company Limited
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These ASP’s are prudentially regulated and monitored by the Insurance Regulatory and Development Authority of India (IRDAI). Under the National Pension System (NPS), the subscriber has the option to choose the type of Annuity and the Annuity Service provider. The subscriber may choose the annuity type/scheme basing on his requirements from amongst the available schemes offered by the respective ASP’s.
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