NPS Lite Swavalamban subscribers can exit before 25 yrs if corpus at Rs1 lakh


NEW DELHI:The Pension Fund Regulatory and Development Authority (PFRDA) has amended the premature exit rule for subscribers of the NPS Lite Swablamban scheme.

As per the amended rule, NPS Lite subscribers are not required to continue in the scheme for a minimum 25 years if their pension corpus is not more than Rs1 lakh and if they are not eligible for migrating to the Atal Pension Yojana (APY).

NPS Lite was designed to ensure secure future of those who are economically deprived and not financially well to do.


As PFRDA circular issued on 2 July said, “As per the 6th amendment of exit regulations, the Swavalamban Subscribers whose accumulated pension wealth do not exceed one lakh rupees and if they are not eligible to migrate to Atal Pension Yojana (APY), can opt to exit with lump-sum payment prematurely. Those eligible subscribers, as mentioned above, are not required to continue in the Swavalmban scheme for a minimum period of twenty-five years irrespective of the receipt of the Govt of India (GoI) co-contribution under Swavalamban by them. However, if GoI’s co-contribution was availed by those eligible Subscribers and the same shall be deducted along with the returns generated from the corpus at the time of their exit.”

The accumulated corpus of these subscribers will be calculated after deducting the government’s contribution, if any, and the returns thereon.

For instance, a Swavalamban subscriber who is aged 43 years and cannot migrate to APY, has a corpus of 1.04 lakh in his Swavalamban PRAN and of which, the government’s contribution and returns constitute Rs4,500. The subscriber will be eligible for a premature exit.


Hence, those Swavalamban subscribers who fulfil the criteria can submit their withdrawal claims to the associated POPs/Aggregators. “Central Record Keeping Agency (CRA) is advised to communicate to the eligible Swavalamban subscribers and POP/Aggregators about the clarification thus provided above,” said the circular.

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