In a circular issued on April 29, the regulator stated that the AMC for Tier II National Pension System (NPS) accounts will be aligned with the AMC applicable to Tier I accounts within the respective sector—government or private. However, it has exempted Tier II accounts from AMC if the corpus is up to ₹1,000 at the end of a quarter.
The regulator has also clarified that each pension scheme maintained under a Permanent Retirement Account Number (PRAN) will be treated as a separate account for both Tier I and Tier II segments, with AMC applied individually to each account.
For dormant accounts, CRAs will levy AMC at 10% of the applicable charge. A dormant account is defined as one that has not received any contribution for four consecutive quarters and is flagged as inactive in the CRA system. Once a contribution is received, the account will be marked active in the following quarter. This framework will come into effect from July 1, 2026.
PFRDA further said that PRAN opening charges will apply only at the time of initial PRAN generation. It added that no fee will be levied for activation or opening of additional Tier I or Tier II accounts under an existing PRAN.
The regulator has also set AMC at zero for accounts with nil balance under Atal Pension Yojana (APY) and NPS-Lite schemes.
CRAs will collect applicable charges at the end of each quarter through invoices raised on employers, where applicable, or through unit deductions from subscriber accounts.
All other provisions of the earlier circular issued on September 15, 2025 will continue to remain in force, the regulator said.
