Revised NPS Charges Effective October 1, 2026: Onboarding Fee of Rs 200 and 0.20% Annual Charge
The Pension Fund Regulatory and Development Authority (PFRDA) has announced new charges for Point of Presence (PoP) entities under the National Pension System (NPS) and NPS Lite, effective October 1, 2026. The updated fee structure eliminates the distinction between common schemes and those under the Multiple Scheme Framework (MSF). Central Recordkeeping Agencies will implement these changes starting in the third quarter of FY 2026-27.
New Onboarding and Annual Charges
Subscribers registering for NPS through a PoP will incur a one-time onboarding fee of Rs 200 for each Permanent Retirement Account Number (PRAN). This fee will not be deducted in a single transaction; instead, it will be collected at Rs 50 per quarter through the cancellation of units by Central Recordkeeping Agencies. The total amount will be remitted to the PoP in the month following the completion of the onboarding process.
Additionally, PoPs will receive an annual charge of 0.20% of the assets under management (AUM) for all schemes, excluding dormant accounts. This charge will be adjusted through the net asset value (NAV) and paid quarterly to the PoP.
Charges for Digital Registrations and Dormant Accounts
For subscribers who complete their registration entirely through a digital process, a one-time charge of Rs 100 may apply, depending on the terms set by PFRDA. Goods and Services Tax (GST) and other applicable taxes will be charged separately.
PFRDA clarified that PoP charges will not apply to dormant accounts. A dormant account is defined as one where no contributions are made for four consecutive quarters after an initial contribution.
Minimum Contributions and Exemptions
The circular also specifies minimum contribution amounts for NPS subscribers. At onboarding, a subscriber must contribute at least Rs 250, while subsequent contributions require a minimum of Rs 10.
Subscribers who opened their NPS accounts through e-NPS and continue to contribute via e-NPS or D-Remit will not incur PoP charges. However, those who initially registered through a PoP will still be subject to these charges for future contributions.
Display of Revised Charges
PFRDA has mandated that all PoPs prominently display their revised charge structure on their websites. The new fee structure does not affect PoP charges for 4A schemes, which will continue to follow their existing guidelines. The revised charges will replace the previous PFRDA circular issued on March 10, 2026.
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