NPS charges changing from October 1: How it affects subscribers
What's the story
The Pension Fund Regulatory and Development Authority (PFRDA) has announced a revision in the charge structure for Point of Presence (PoP) channels under the National Pension System (NPS). The new charges will come into effect from October 1, 2026. Under this revised framework, NPS subscribers will have to pay a one-time onboarding charge of ₹200 per Permanent Retirement Account Number (PRAN).
Charge deduction
Onboarding charge details
The one-time onboarding charge won't be collected as a lump sum.
Instead, it will be deducted at ₹50 per quarter through cancellation of units by Central Recordkeeping Agencies (CRAs).
The amount will then be paid to the PoP in the month following the quarter in which onboarding is completed.
For fully digital and non-face-to-face onboarding, a reduced charge of ₹100 may apply depending on terms set by PFRDA for the PoP.
Cost
Annual charge for asset management
Along with the onboarding charge, NPS subscribers will also have to pay an annual charge of 0.20% of their assets under management (AUM).
This charge will be adjusted through the NPS net asset value (NAV) and paid to the PoP on a quarterly basis.
However, it won't apply to dormant NPS accounts, defined by PFRDA as those with no contributions for four consecutive quarters after an initial contribution in a quarter.
Exemption
Differentiation between onboarding methods
The revised rules also differentiate between subscribers who open their NPS account through a PoP and those who use the e-NPS route.
Those onboarded through e-NPS and later contribute via e-NPS or D-Remit will not have to pay PoP charges.
However, those who first join NPS via a PoP will still be liable for the prescribed charges even if they later contribute via these digital channels.