Over 65% of partial NPS withdrawals are for residential property

PFRDA data reveals that the NPS industry reported 4.87 lakh partial withdrawal cases in FY 2022-23. Of these, 67% or 3.25 lakh partial withdrawals are towards the purchase or construction of residential house.

Another 58,360 partial withdrawals are for funding the higher education of children. This forms 12% of the total partial withdrawal requests. Additionally, 8% or 39,464 withdrawals are for meeting medical and incidental expenses due to disability/incapacitation.

The remaining 13% or 63,464 withdrawals are for treatment of specified illness, marriage of children, skill development/re-skilling or any other self-development activities and establishment of own venture or any start-up.

Earlier in 2015, PFRDA allowed partial withdrawals of up to 25% of the accumulated corpus for specific reasons and subject to certain conditions 

FY 2021-22 Vs FY 2022-23

The total number of partial withdrawal cases significantly increased from 1.31 lakh in FY 2021-22 to 4.87 lakh in FY 2022-23.

Notably, the purchase or construction of a residential house constituted the majority of partial withdrawals in FY 2021-22 as well. On comparative basis, it reported the highest absolute rise of 2.50 lakh.  

However, in percentage terms withdrawal for funding the higher education of children reported the largest jump.