InvestorQ : What are the withdrawal rules for Tier-II NPS accounts?
ramya Bhaskaran made post

What are the withdrawal rules for Tier-II NPS accounts?

3 years ago

The National Pension Scheme is a voluntary and long-term investment plan for Indian citizens who want to create their retirement corpus.

As the name suggests, the Tier-II NPS account is an advanced NPS account, with Tier-I being the basic account. NPS Tier-II, unlike Tier-I account, is a non-retirement NPS account. The government allows private and public sector employees as well as self-employed individuals to invest in it.

There is no lock-in period for NPS Tier-II accounts. The investor can withdraw his/her contribution at any time from the NPS Tier-II account.

However, there is a lock-in of three years for government employees who are investing in NPS Tier-II to avail of a tax deduction. Although this new provision for government employees was announced in a press conference in December 2018, it has not yet been implemented.