Protean CRA Introduces
Systematic Lumpsum Withdrawal (SLW)
facility for NPS Subscribers
What is Systematic Lumpsum Withdrawal (SLW)?
With SLW facility, on exit, on account of Superannuation, lumpsum corpus can be withdrawn in a phased manner. Subscriber has an option to withdraw desired amount systematically at regular periodic intervals. This is similar to Systematic Withdrawal Plan under Mutual Funds.
Norms
As per PFRDA exit guidelines, in case of exit on account of Superannuation, minimum of 40% of the NPS corpus is required to be utilized for Annuity i.e. Pension and maximum 60% can be withdrawn as lumpsum by the Subscriber.
If the NPS corpus is upto 5 lac, the option of complete (100%) lumpsum withdrawal is available.
Benefits of SLW
  • Generates
    regular
    cash flows
  • Annuity, coupled with SLW, boosts the subscriber's monthly income.
  • Tool for Wealth creation. Returns shall continue to accumulate on the remainder Corpus
  • Tax Benefits can be availed on all SLW Withdrawals
Features of SLW
  • Can be opted at
    the time of
    Superannuation
    (Retirement) Exit
  • Applicable only on
    Lumpsum NPS
    corpus
  • Option of Monthly,
    Quarterly, Half
    yearly and Yearly
    frequency
Important Note

There will be a gap of 5 days for start of SLW after authorisation of Superannuation
exit request in CRA.

For example: SLW Date is say 1st of the month & frequency selected is Monthly.

Date of Superannuation/Retirement (DOR) – July 31, 2023

  • If exit request is authorised on July 25, 2023, SLW will start from August 1, 2023.
  • If exit request is authorised on July 28, 2023, SLW will start from Sept 1, 2023.
  • If exit request is authorised on August 10, 2023, SLW will start from Sept 1, 2023.

In the event of official holidays on Saturday/Sunday or Business Holidays coinciding with the
SLW Date, SLW will get executed in the CRA system on the next working day.

Funds will be transferred to the your bank account within (T+ 2) days, where “T” is the date of
execution of SLW in the CRA system