How to Close NPS Account

Closing your NPS account doesn’t have to be hard. If you know when and how, you can get your money back with few hassles. Here’s a simple guide.

What does “close NPS account” mean

Closing account means you stop NPS and withdraw your saved money (the “corpus”). You may take a lump sum, buy an annuity, or both — depending on your age and corpus size.

Quick checklist before you begin

• PRAN number or e-PRAN login credentials
   
• Proof of identity (Aadhaar / PAN) and address
   
• Bank account proof (cancelled cheque or passbook)
   
• Withdrawal/Exit form (online or physical)
   
• Connected mobile number for OTP/e-Sign
   
• Decide: lump sum, annuity, or both
   

Simple step-by-step process

1. Log in at the NPS portal (CRA/eNPS site) using your PRAN or e-PRAN.
    
2. Go to “Exit Request” (or similar) and pick reason: retirement, early exit, or nominee closure.
    
3. Upload the required documents and choose how you want funds (lump-sum or annuity).
    
4. Confirm, verify OTP, and give e-Sign or submit the form.
    
5. Wait for processing — money will go to your registered bank account.
    

Here’s a quick real-life example: Suppose you are 62 and your NPS corpus is ₹4.8 lakh. Since the corpus is under ₹5 lakh, you can withdraw the full amount as a lump sum. You follow the steps above, exit request is approved, and ₹4.8 lakh lands in your bank in a few weeks.

What happens after withdrawal: what to check

• If corpus ≤ ₹5 lakh → you can take the full amount.
   
• If corpus > ₹5 lakh → usually at retirement you must buy annuity for part of it (often ~ 40%), rest comes as a lump sum.

If you exit early (before 60), rules may require you to invest ~ 80% in annuity — rest as lump sum.