Family Pension Income Tax on principal withdrawal

Dear Friends,

I have a pension query, please guide.

If I withdraw full amount from Family Pension account of HDFC, amount is 7 lacs, and invest this whole amount in Bank FD’s.

Will that amount 7 lacs be taxable??  Senior citizen.

Note:

This I want to do because I have to make regular trips to bank for KYC as they want to check that person is alive. At regular intervals they stop pension again.

I would be free from such harassment / hindrances if I invest in FD’s.