Overview
- Amended rules now in force allow non-government subscribers to take up to 80% of their corpus as a lump sum at exit, with 20% mandatorily annuitised, while the 60:40 split continues for government subscribers.
- Subscribers can defer their lump-sum withdrawal or annuity purchase until age 85 and may opt for Systematic Unit Redemption to spread payouts over at least six years.
- For smaller balances, 100% withdrawal is allowed at normal exit when accumulated wealth is up to Rs 8 lakh (up to Rs 5 lakh on voluntary exit), with slab-based options for Rs 8–12 lakh.
- New liquidity features permit loans from regulated institutions against the NPS corpus up to 25% of the subscriber’s own contributions and remove a separate five-year lock-in for private subscribers, with interim 20% relief to nominees in missing-subscriber cases.
- Investment choices broaden as certain users can choose 100% equity under the Multiple Scheme Framework from October 2025 and equity schemes may allocate up to 5% to gold/silver ETFs, REITs, equity AIFs and IPOs, while Scheme A is being phased out with a December 25, 2025 switch deadline.