NPS charges to change from October 1: What subscribers need to know
The Pension Fund Regulatory and Development Authority (PFRDA) will revise charges applicable to Point of Presence (PoP) channels under the National Pension System (NPS) and NPS Lite, effective October 1, 2026. The revised structure introduces new onboarding fees, an annual charge based on assets under management, and exemptions for subscribers who onboard through the e-NPS route.
New onboarding charge and annual fee
Under the revised structure, PoPs will be allowed to levy a one-time onboarding charge of ₹200 per Permanent Retirement Account Number (PRAN). For fully digital, non-face-to-face onboarding, a lower charge of ₹100 may apply, subject to terms determined by PFRDA.
The ₹200 onboarding charge will not necessarily be collected as a single upfront payment. Instead, an amount equivalent to ₹50 per quarter will be deducted through cancellation of units by Central Recordkeeping Agencies (CRAs), with the amount payable to the PoP in the month following the quarter in which onboarding is completed.
In addition to the onboarding charge, subscribers will face an annual charge of 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.
The annual charge will not apply to dormant NPS accounts. PFRDA defines a dormant account as one where, after a contribution in a quarter, there are no further contributions for four consecutive quarters.
GST and other applicable taxes will be charged in addition to the prescribed fees, as reported by CNBC TV18.
Exemptions for e-NPS subscribers
The revised rules also differentiate between subscribers who open their NPS account through a PoP and those who use the e-NPS route. Subscribers who are onboarded through e-NPS and subsequently make contributions through e-NPS or D-Remit will not be liable 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.
Implementation timeline
The charges will be applicable from October 1, with CRAs implementing deductions from the third quarter of the 2026-27 financial year. The revised structure will replace PFRDA's circular on PoP charges for common NPS schemes issued on March 10, 2026.
Minimum contribution limits remain unchanged at ₹250 at onboarding and ₹10 for subsequent contributions, as reported by CNBC TV18.
The changes are part of PFRDA's ongoing review of the fee structure for NPS, which is regulated by the authority. Neither CNBC TV18 nor NewsBytes reported any public reaction from subscriber groups or industry bodies at the time of writing.