NPS charges to change from October 1: What subscribers need to know

The cost structure for subscribers using Point of Presence (PoP) channels under the National Pension System (NPS) is set to change from October 1, 2026, with the Pension Fund Regulatory and Development Authority (PFRDA) revising the charges applicable to NPS and NPS Lite.

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 the terms determined by PFRDA for the PoP.

Subscribers will also face an annual charge of 0.20% 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.

How the NPS charge will be deducted

The ₹200 onboarding charge will not necessarily be collected as a single upfront payment. The circular says an amount equivalent to ₹50 per quarter will be deducted through cancellation of units by the Central Recordkeeping Agencies (CRAs), with the amount payable to the PoP in the month following the quarter in which onboarding is completed.

The charges will be applicable from October 1, with CRAs implementing the deductions from the third quarter of FY 2026-27.

GST and other applicable taxes will be charged in addition to the prescribed fees.

e-NPS subscribers can avoid PoP charges

The revised rules also distinguish 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, subscribers who initially join NPS through a PoP will continue to be liable for the prescribed PoP charges even if they subsequently make contributions through e-NPS or D-Remit.

The minimum contribution for NPS subscribers will remain ₹250 at the time of onboarding and ₹10 for subsequent contributions.

PFRDA said the revised structure will replace its March 10, 2026 circular on PoP charges for common NPS schemes, including NPS Vatsalya and NPS Lite, from October 1.