NPS exit rules: How is exit processed when a subscriber holds multiple pension accounts under PRAN?

Subscribers under the National Pension System (NPS) who hold multiple pension schemes under a single Permanent Retirement Account Number (PRAN) will have each pension account treated separately at the time of exit, as clarified in the “Exits and Withdrawals from National Pension System (NPS) for All Citizen Model” FAQ by the Pension Fund Regulatory and Development Authority (PFRDA).

Separate treatment of pension accounts under NPS

Under NPS, each pension scheme is maintained as a separate individual pension account under the subscriber’s PRAN. When a subscriber holds more than one individual pension account, the exit or closure of each such account is processed independently. The provisions of the applicable Exit Regulations are applied separately to each pension account.

How is the exit processed?

This means that exit rules, withdrawal eligibility, and settlement requirements are not combined across schemes. Instead, each pension account is evaluated on its own terms based on the applicable regulations governing that specific scheme.

Example of multiple pension accounts

What does this mean for NPS subscribers?

This clarification ensures that withdrawal conditions, exit eligibility, and settlement rules are not combined across schemes. Instead, each pension account is assessed independently based on the regulations applicable to that specific scheme.

Why is this important?

This is important for subscribers who diversify their investments across multiple schemes within NPS. It reinforces that each investment option operates under its own regulatory conditions, even when held under a single PRAN.