With evolving financial needs, many investors are now seeking flexible savings options. The recent revision to the mis partial withdrawal rules 2025 by India Post brings clarity to account holders on how they can access their funds early without breaking the entire scheme. These updated rules under the Partial Withdrawal Post Office MIS structure are aimed at offering limited liquidity without compromising long-term benefits.
The Monthly Income Scheme (MIS) is a government-backed savings plan ideal for risk-averse investors who need fixed monthly income. But until recently, partial withdrawal wasn’t clearly structured. With the 2025 updates, the government has made provisions for partial access, adding more flexibility to this fixed-income product.
This guide explains the updated rules, eligibility criteria, applicable penalties, and how you can make the most of the revised scheme.
What Are the New MIS Partial Withdrawal Rules?
The mis partial withdrawal rules 2025 now allow account holders to withdraw a portion of their invested capital before maturity under certain conditions. The aim is to help those facing temporary financial emergencies without needing to close the entire account.
Here are the highlights:
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Partial withdrawal is permitted only once during the 5-year term.
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Account must complete at least 1 year to qualify.
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Withdrawal allowed up to 40% of the principal.
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Remaining balance continues to earn interest at the declared rate.
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A penalty of 1% on the withdrawn amount will be applied.
This update under the Partial Withdrawal Post Office MIS allows investors to access urgent funds while keeping the rest of the deposit intact.
Eligibility Criteria for MIS Partial Withdrawal in 2025
Not all MIS accounts are automatically eligible for this facility. The government has laid out specific criteria under the mis partial withdrawal rules 2025:
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The account must be more than 12 months old from the date of deposit.
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Only individual accounts and joint accounts are eligible (not minor-linked accounts).
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Accounts must be in good standing with no previous pre-closure or inactive period.
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Withdrawal limit must not exceed 40% of the principal deposited.
Once you make a partial withdrawal, you cannot withdraw again until the account matures. This rule is essential under the Partial Withdrawal Post Office MIS to maintain scheme stability.
Penalties and Interest Impact – What to Expect
Though this facility adds flexibility, there are consequences for early withdrawal. Here’s a breakdown of the charges and how they affect your interest flow:
| Principal Deposit | Withdrawal Limit (Max 40%) | Penalty (1%) | Remaining Balance | Monthly Interest After Withdrawal |
|---|---|---|---|---|
| ₹1,50,000 | ₹60,000 | ₹600 | ₹90,000 | ₹555 |
| ₹3,00,000 | ₹1,20,000 | ₹1,200 | ₹1,80,000 | ₹1,110 |
| ₹4,50,000 | ₹1,80,000 | ₹1,800 | ₹2,70,000 | ₹1,665 |
| ₹9,00,000 (Max) | ₹3,60,000 | ₹3,600 | ₹5,40,000 | ₹3,330 |
The table shows that while partial withdrawal offers temporary relief, it also reduces the monthly interest due to a smaller principal. Account holders should weigh this decision carefully before using this feature.
How to Apply for MIS Partial Withdrawal
India Post has streamlined the process under the mis partial withdrawal rules 2025. Here’s how you can apply:
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Visit the post office branch where your MIS account is held.
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Request the “MIS Partial Withdrawal Form 2025”.
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Provide original passbook and valid ID proof.
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Specify the amount you wish to withdraw (up to 40% of principal).
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Sign and submit the declaration acknowledging the 1% penalty.
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The branch officer will verify and process your request within 3–5 working days.
If your account is linked with India Post Payments Bank, the request can also be initiated digitally through the IPPB app.
Conclusion
The revised mis partial withdrawal rules 2025 under the Partial Withdrawal Post Office MIS scheme provide much-needed liquidity to investors without fully terminating their deposits. This one-time facility can be a financial lifeline during emergencies, especially for senior citizens or salaried individuals with urgent needs.
However, it’s essential to understand the associated penalties and how the withdrawal impacts your monthly income. Use this option only when absolutely necessary, and make sure to consult with your post office for personalized advice on how it affects your future payouts.
FAQs
Can I partially withdraw funds from my MIS account in 2025?
Yes. As per the mis partial withdrawal rules 2025, one-time partial withdrawal is allowed up to 40% of your original investment after completing one year.
Is there any penalty for partial withdrawal?
Yes. A 1% penalty on the withdrawn amount will be charged under the Partial Withdrawal Post Office MIS guidelines.
Can I make more than one partial withdrawal?
No. Only one withdrawal is allowed during the full 5-year tenure of the MIS account.
Will my monthly interest reduce after partial withdrawal?
Yes. Since your principal balance reduces, your monthly interest will also be lower based on the new principal.
Can I apply for partial withdrawal online?
Yes. If your MIS account is linked to IPPB, you can apply online via the India Post Payments Bank mobile app or portal.
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