2 days ago
NPS PoP Charges Standardized From October 1, 2026
PFRDA is changing how certain NPS service charges are handled from October 1, 2026.
Opening an account through a Point of Presence can cost ₹200.
This amount is taken in four quarterly instalments of ₹50 by cancelling units.
Some people who complete onboarding fully online may pay ₹100 instead, depending on PFRDA’s rules.
There is also an annual charge of 0.20% of the money invested in the account.
This charge is taken through the account’s NAV rather than as a separate bill.
If an account was opened through e-NPS and contributions continue through e-NPS or D-Remit, no PoP charges apply.
But using online contributions later does not remove charges from an account originally opened through a PoP.
PFRDA will standardize Point of Presence charges across NPS and NPS Lite from October 1, 2026.
The onboarding charge is ₹200 per PRAN, collected as ₹50 quarterly unit cancellations.
Fully digital, non-face-to-face onboarding may qualify for a ₹100 charge under PFRDA’s terms.
The annual PoP charge is 0.20% of AUM, adjusted through NAV and paid quarterly.
Accounts opened through e-NPS remain exempt when later contributions use e-NPS or D-Remit, while PoP-opened accounts retain applicable charges.
- Who
- PFRDA, Point of Presence providers, Central Recordkeeping Agencies, and NPS subscribers.
- What
- PFRDA is introducing a standardized PoP charge framework for NPS and NPS Lite schemes.
- Where
- Across NPS and NPS Lite accounts and schemes covered by the framework.
- When
- The revised framework takes effect on October 1, 2026, with deductions implemented from Q3 of FY 2026-27.
- Why
- To standardize charges across schemes and provide uniform requirements for scheme classification, presentation, disclosures, and comparisons.
Key facts
- Onboarding charge
- ₹200 per PRAN opened through a PoP.
- Digital onboarding charge
- ₹100 may apply when onboarding is completed entirely through a digital, non-face-to-face route, subject to PFRDA’s terms.
- Onboarding collection
- The charge is recovered through quarterly cancellation of units at ₹50 per quarter.
- Annual PoP charge
- 0.20% of assets under management annually, adjusted through NAV and paid quarterly.
- Minimum contribution
- ₹250 when opening an NPS account and ₹10 for subsequent contributions.
- Dormant accounts
- Dormant accounts are excluded from PoP charges; dormancy is identified after no contribution for four consecutive quarters following a contribution quarter.
- Exception
- PoP charges for schemes covered under Regulation 4A of the Exit Regulations continue to follow their respective guidelines and circulars.
Quotes
Pension Fund Regulatory and Development Authority (PFRDA)
India’s pension-sector regulator that issued the standardized NPS charge framework
“the charges that may be collected by the point of presence from the subscriber shall be subject to the limit, mode, and manner of collection, as permitted by the Authority”
financialexpress.com
Sources
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