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

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

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

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

Negotiation flexibility for PoPs

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

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

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

Revised NPS charges

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

Regarding contributions and non-financial transactions, a fee of up to 0.50 per cent of contribution amount is applicable, with a minimum of Rs 30 and a maximum of Rs 25,000, negotiable within specified slab. ditionally, re'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, charge is Rs 75 per annum. For annual contributions exceeding Rs 6,000, persistency charge is Rs 100 per annum.