How to reclaim withdrawn but unclaimed amount from National Pension System (NPS) account?

Image Source : PFRDA Here is how to reclaim withdrawn but unclaimed amount from National Pension System (NPS) account

The Pension Fund Regulatory and Development Authority (PFRDA) has announced that National Pension System (NPS) subscribers can retrieve their ‘withdrawn but unclaimed’ funds by following a specified format. The regulator shared this format in a recent circular dated February 7 while stating that these unclaimed amounts do not earn any interest.

According to the media reports  PFRDA is also working on a module that will enable re-investment of the unclaimed amount. 

There have been cases where the corpus of subscribers was unable to be credited to their savings bank accounts due to incorrect bank details or because the subscribers cancelled the annuity during the “free look period” and the purchase price for the annuity was returned and remained in the NPS system until a new annuity service provider was chosen.

“These amounts identified as ‘withdrawn but unclaimed’ do not earn any investment returns to the benefit of Subscribers,” PFRDA said.

The regulator further said that subscribers can reclaim the amount as per the format they have released. Subscribers need to file the format after filling the details before the nodal officers, Points of Presence (POP), APY Service Providers, CRAs and NPS Trust (NPST) as the case may be.

Withdrawal Module

To make the process of reclaiming unclaimed funds easier, PFRDA is developing a digital interface called “My Withdrawal Module (MWM)” for subscribers. This module will provide features such as 

  1. The ability to submit and verify beneficiary bank account details through penny drop for name matching between PRAN and bank account, 
  2. Provision to upload proof of bank account
  3. Choose an annuity service provider for the reissuance of annuity.

Once the MWM is established, any unclaimed amounts that have not been transferred to the beneficiary’s bank account after one month will be reinvested in the same PRAN according to the subscriber’s choice of investment/provident fund that was in effect at the time of exit. This will allow the subscribers to benefit from market-linked returns, according to the regulator.


Q1: What is the National Pension System (NPS)?

The National Pension System (NPS) is a government-backed pension scheme that is designed to provide citizens with a steady source of income after their retirement. It is a defined contribution scheme, which means that the amount of pension a subscriber receives depends on the contributions made and the returns generated on the investments made.

Q2: Who regulates the National Pension System (NPS)?

The Pension Fund Regulatory and Development Authority (PFRDA) is the regulator of the National Pension System (NPS) in India. PFRDA is responsible for overseeing the functioning of the NPS, ensuring its compliance with laws and regulations, and protecting the interests of NPS subscribers.

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