The Pension Fund Regulatory and Development Authority (PFRDA) has revised the charges for opening a National Pension Scheme (NPS) account through both online and offline modes.
These updated charges apply to NPS (All Citizens and Corporate) as well as the NPS-Lite model.
Additionally, the cost of opening an NPS-Vatsalya account will be the same as that of the NPS-All Citizens model. These new charges will come into effect from January 31, 2025.
Finance Minister’s Proposal in the Budget
During the budget presentation on February 1, Finance Minister Nirmala Sitharaman proposed an additional tax exemption of up to ₹50,000 under Section 80CCD (1B) of the Income Tax Act, 1961, for those investing in the NPS Vatsalya scheme. This benefit is also available to regular NPS contributors.
As per the PFRDA Master Circular issued on February 4, 2025, the service charge for an NPS-Vatsalya account will be the same as that for the NPS-All Citizen Model.
NPS Account Opening Charges
To register, an initial fee of up to ₹400 is applicable. A charge of 0.50% will be deducted from the first contribution, with a maximum cap of ₹25,000. Additional charges will also apply to all subsequent contributions.
Non-Financial Transactions
For non-financial transactions, a fee of up to ₹30 will be charged. In the NPS All Citizen Model, the persistency charge depends on the annual contribution.
If the contribution is between ₹1,000 and ₹2,999, a charge of up to ₹50 will be applied each year.
For contributions between ₹3,000 and ₹6,000, the charge will be ₹75, while for amounts above ₹6,000, a maximum fee of ₹100 will be levied. These charges are deducted through unit cancellation.
e-NPS Transactions
For e-NPS transactions, a fee of up to 0.20% of the contribution is charged, with a maximum limit of Rs 10,000.
This fee is deducted in advance and applies only to NPS All Citizen and Tier-II accounts.
D-Remit Contribution
A trail commission of up to 0.20% is applicable on D-Remit contributions, capped at Rs 10,000. This commission is deducted periodically through unit cancellation.
Exit Processing Fee
For processing withdrawals, a fee of up to 0.125% of the total amount is charged, with a maximum limit of Rs 400. This charge is also deducted in advance.
Durability Fee
A durability fee is applicable only if an account holder stays connected to a POP (Point of Presence) for more than six months in a financial year.
The minimum amount per transaction is Rs 500, and the annual contribution should be at least Rs 1,000.
