The "partial withdrawal" is however allowed only after 10 years of contribution by the subscriber, said the draft guidelines by the Pension Fund Regulatory and Development Authority (PFRDA).

"This withdrawal may be treated as partial withdrawal and whereby the subscriber can withdraw not exceeding twenty-five percent (25%) of the contribution made by the subscriber...," the guidelines said.

As of now, partial withdrawals are not permitted and an NPS subscriber has to completely exit the scheme for withdrawl before maturity. NPS is a long-term, retirement savings product which accumulates and generates maximum pension wealth. NPS is mandatory for all central government employees who joined services after April, 2004 and is open to other citizens also.

The partial withdrawal, the PFRDA proposed, would be permitted from the individual pension account for higher education and marriage of children and purchase or construction of residential house/flat.

The account holder can also opt for partial withdrawal to meet treatment expanses for certain illnesses, like cancer, kidney failure, major organ transplant, heart valve surgery, stroke, total blindness and paralysis.
On frequency of withdrawal, the guidelines said the subscriber may be allowed to withdraw at the most 3 times and there should be a gap of at least 5 years between two withdrawls.

The PFRDA has sought public comments on draft guidelines till February 15.

PTI