Close NPS Account After Retirement at Age 60 or Above
Exit at superannuation is the standard, most common way an NPS account gets closed, and it is
the route that changed most significantly in December 2025.
- Non-government subscribers, covering the All Citizens Model and Corporate NPS, can withdraw up to 80% of
the corpus as a lump sum, with the remaining 20% mandatorily used to purchase an annuity.
- Government subscribers continue under the older structure: 60% lump sum, with the remaining 40% going
into an annuity.
- If the total corpus is ₹8 lakh or less, the entire amount can be withdrawn as a lump sum, with no
annuity requirement at all, regardless of subscriber category.
- Deferment is available up to age 85, for both the lump sum withdrawal and the annuity purchase, an
increase from the previous limit of 75.
On tax treatment, the lump sum withdrawal rule and the tax exemption rule are not the same.
Section 11 (read with Schedule II, item 6) of the Income Tax Act 2025 currently exempts only 60% of the
corpus from tax. The portion between 60% and 80% that non-government subscribers can now withdraw may be
taxable at slab rate until this gap between the two rules is formally resolved. Annuity income, regardless
of subscriber category, is taxed as regular income once payouts begin.
NPS Premature Exit, Before Age 60
Exiting before superannuation follows a stricter structure than a normal retirement exit,
since NPS is designed to discourage withdrawing the corpus early.
- Up to 20% of the corpus can be withdrawn as a lump sum.
- At least 80% must be used to purchase an annuity so that some retirement income continues even after an
early exit.
- If the total corpus is ₹5 lakh or less at the time of the premature exit request then the entire amount
can be withdrawn as a lump sum with no annuity requirement.
The lump sum portion in a premature exit is taxed under prevailing income tax rules. Any
annuity income remains taxable at the subscriber's slab rate, the same as a normal exit.
NPS Account Closure Due to Death of the Subscriber
This route works differently from the other two, and the difference matters for the family
involved.
- The full accumulated corpus, 100% for non-government subscribers, is paid to the registered nominee or
legal heir with no mandatory annuity requirement.
- Government-sector rules are stricter, typically requiring a portion of the corpus above a defined
threshold to go into an annuity with the remainder paid as a lump sum.
- The nominee can choose to purchase an annuity voluntarily even where it is not required if a regular
income stream is preferred over a lump sum.
Tier II Account Settlement
Tier II is a voluntary savings account linked to NPS, and its treatment is different from the
retirement-focused Tier I account. When Tier I is closed on exit, the linked Tier II account is also closed,
and the balance is paid to the subscriber or, in the event of death, to the nominee or legal heir as
applicable.
A full breakdown of the documents and step-by-step process for this route is covered in
the NPS death claim form guide.
An Alternative to NPS Account Closure (NPS RIS)
Before withdrawing the full lump sum on exit, it is worth knowing that a full withdrawal is
no longer the only option for that portion of the corpus. PFRDA's Retirement Income Scheme, introduced in May 2026, lets
a subscriber keep the eligible lump sum invested and draw a periodic income from it instead. Some
subscribers find this preferable to closing the account outright.
Step-by-Step Process for How to Close NPS Account Online
Most CRAs follow a similar sequence for initiating an exit request.
- Log in to the CRA portal using the PRAN and password and then complete OTP
verification. Generate or verify your Exit Claim ID which must be initiated in the system before a
formal withdrawal request can proceed.
- Select "Exit from NPS" under the account services section and choose the applicable
exit type, superannuation or premature.
- Enter withdrawal details, including the lump sum percentage, chosen Annuity Service
Provider, annuity scheme and updated bank details.
- Upload the documents that are required.
- Review and authenticate the request using OTP that will be sent and then submit.
- Wait for verification and processing by the CRA and the associated Nodal Office after
which funds are transferred and the annuity, if it is applicable, begins paying out.
CRA Portal Steps
The exact process for generating or using an Exit Claim ID depends on the CRA handling the
PRAN.
- For superannuation or exit at 60, the CRA generally generates the Claim ID before the exit request can
be submitted.
- For premature exit, the subscriber may need to approach the concerned Nodal Office or Point of Presence
for Claim ID generation.
- Death-related exit requests do not require a Claim ID.
Subscribers can access their NPS account through the relevant CRA portal including Protean,
KFin Technologies or CAMS and initiate the applicable exit request after the Claim ID is available. The CRA
then routes the request for verification and authorisation before processing the withdrawal.
Offline Process to Close NPS Account
Subscribers who cannot complete the exit online can use the offline route through their Nodal
Office or even Point of Presence.
- Download the NPS exit form from the NPS website or collect it from a POP or Nodal Office
- Fill in the required subscriber and also withdrawal details
- Attach the required supporting documents
- Then Submit the completed form to the POP or Nodal Office handling the account
- Wait for verification and confirmation of the closure
Documents Needed for NPS Account Closure
To close an NPS account, you need to submit the required documents along with the withdrawal
or exit request.
- PRAN card or PRAN details
- Identity proof
- Address proof
- Bank account proof, typically a cancelled cheque, bank passbook copy, or recent statement showing your
name, account number, and IFSC code
- Passport-size photograph
- Annuity application form, where an annuity is being purchased
- Proof of retirement or superannuation, for government employees
-
How Long Does NPS Closure Take?
Once you submit the NPS closure request and the required documents, the request goes through
a verification and processing stage. Processing typically takes between 10 and 30 working days. The exact
timing depends on how complete the submitted documentation is, the exit type selected and how quickly the
chosen annuity provider processes its side of the request.
-
Helpdesk & Escalation Channels
Subscribers can contact their respective CRA helpdesk for questions or delays related to NPS
exit and withdrawal requests. PFRDA currently lists Protean, KFin Technologies and CAMS as registered CRAs,
with dedicated subscriber support channels.
If a withdrawal request remains unresolved, a grievance can first be raised with the
concerned CRA. If the issue is not resolved then the subscriber can escalate it through the PFRDA grievance
redressal mechanism.
How to Close NPS Account and Plan Your NPS Exit
Closing an NPS account comes down to knowing which of the three exit routes applies.
Confirming the current lump sum and annuity split for that specific route matters too, since the rules
changed materially in December 2025. Non-government subscribers exiting at 60 now keep considerably more
flexibility than they did even a year ago, while premature exit remains deliberately restrictive to
discourage early withdrawal. Before initiating any exit request, it is worth confirming whether a full
closure is actually necessary. Options like RIS now let a subscriber draw an income without giving up the
account entirely.
Reach out to a PensionBazaar retirement planning expert before deciding how to close or
restructure your NPS account.
22 Oct 2026 
