Planning to open an NPS account? Get the scoop on the latest fees rolled out by the PFRDA

NPS fee structure update: The Pension Fund Regulatory and Development Authority (PFRDA) has rolled out an updated fee structure for Point of Presence (PoP) services within the National Pension Scheme (NPS). These PoPs, appointed by the PFRDA, act as the interface for Indian citizens to manage their NPS accounts through their network of branches, known as POP Service Providers (POP-SP).

According to a recent circular dated April 25, 2024, PoPs retain the flexibility to negotiate charges with subscribers, provided they fall within the specified minimum and maximum limits.

Notably, a persistency charge will be levied annually on NPS accounts under the All Citizen Model if subscribers maintain their association with PoPs for more than six months in a financial year.

Negotiation flexibility for PoPs

This charge will be deducted from units in the CRA system at the end of the financial year.

"The PoPs will continue to have the option to negotiate the charges with the subscribers, but within the prescribed minimum and maximum charge structure," said PFRDA in a master circular.

"Persistency charge per financial year will be applicable on accounts under the NPS-All Citizen Model where the subscribers are associated with the PoPs for more than six months in a financial year. This charge will be payable annually to the associated PoPs by deduction of the units in the CRA system after closure of the financial year," the circular added.

Revised NPS charges

For initial subscriber registration, charges range from a minimum of Rs 200 to a maximum of Rs 400, negotiable within the specified slab only. These charges are to be collected upfront.

Regarding contributions and non-financial transactions, a fee of up to 0.50 per cent of the contribution amount is applicable, with a minimum of Rs 30 and a maximum of Rs 25,000, negotiable within the specified slab. Additionally, there's a fixed persistency charge of Rs 30, non-negotiable.

For annual contributions ranging from Rs 1,000 to Rs 2,999, a persistency charge of Rs 50 per annum is applicable, while for contributions between Rs 3,000 and Rs 6,000, the charge is Rs 75 per annum. For annual contributions exceeding Rs 6,000, the persistency charge is Rs 100 per annum.