The Pension Fund Regulatory and Development Authority (PFRDA) has updated the charges for opening National Pension Scheme (NPS) accounts through online and offline methods.
These changes apply to both the NPS (All Citizens and Corporate) and NPS-Lite models.
The fee for opening an NPS-Vatsalya account will be the same as the NPS-All Citizens model. The new charges will take effect on January 31, 2025.
Finance Minister presented the proposal in the budget
During the budget presentation on February 1, Finance Minister Nirmala Sitharaman proposed an additional tax exemption of up to Rs 50,000 for those investing in the NPS Vatsalya scheme under section 80 CCD (1B) of the Income Tax Act, 1961. This benefit is also extended to regular contributors of NPS.
As per the PFRDA Master Circular issued on February 4, 2025, the charge for the NPS-Vatsalya account will be the same as the charge under the NPS-All Citizen Model.
Charges for opening NPS account
Initially, a registration charge of up to Rs 400 will be applied. A 0.50% charge will be levied on the first contribution, with a maximum limit of Rs 25,000. Charges will also be applied to all subsequent contributions.
Non-financial transactions
A fee of up to Rs 30 will be charged for non-financial transactions. The persistency charge for the NPS All Citizen Model depends on the annual contribution.
For contributions between Rs 1,000 and Rs 2,999, a charge of up to Rs 50 will be levied annually.
For contributions between Rs 3,000 and Rs 6,000, the charge will be Rs 75, and for contributions above Rs 6,000, the maximum charge of Rs 100 will apply. These charges are deducted through unit cancellation.
e-NPS Transactions
A fee of up to 0.20% of the contribution applies for e-NPS transactions, with a maximum limit of Rs 10,000.
This fee is charged in advance and is applicable only to NPS All Citizen and Tier-II accounts.
D-Remit Contribution
A trail commission of up to 0.20% of the contribution, subject to a maximum of Rs 10,000, is levied on D-Remit contributions. The commission is deducted from units periodically.
Procedure for Processing Exit
A fee of up to 0.125% of the total amount, with a maximum limit of Rs 400, is charged for processing withdrawals. This fee is also collected in advance.
Durability Fee
The durability fee applies if a customer remains connected to a Point of Presence (POP) for more than six months in a financial year.
The minimum contribution per transaction is Rs 500, and the minimum annual contribution is Rs 1,000.
