The National Pension System (NPS) is set to see some important rule changes from July 1, 2026.
The Pension Fund Regulatory and Development Authority (PFRDA) is introducing a new fee structure to make charges more uniform, transparent, and easier to understand for all subscribers.
These updates will mainly affect Tier-II accounts, dormant accounts, and users who hold multiple schemes under a single PRAN.
Tier-II Account Charges Will Change
One of the biggest updates is related to Tier-II accounts under the NPS.
Earlier, Tier-II accounts had different charges compared to Tier-I accounts.
But under the new rules, the Annual Maintenance Charges (AMC) for Tier-II will now match Tier-I charges within the same category, whether it is government or private sector.
This change means some investors may end up paying slightly higher charges than before.
However, there is also relief for small investors.
If the Tier-II account balance is ₹1,000 or less at the end of a quarter, no AMC will be charged.
This helps inactive or low-balance accounts avoid unnecessary fees.
Multiple Schemes and PRAN Rules Get Stricter
Another major change involves the Permanent Retirement Account Number (PRAN).
If a subscriber has more than one pension scheme under a single PRAN, each scheme will now be treated as a separate account.
This means AMC will be charged individually for each scheme.
For some investors, this could increase the total cost of maintaining their NPS accounts.
The aim behind this rule is to make the system more structured and remove confusion about combined accounts.
Relief for Dormant NPS Accounts
There is also some relief for inactive or dormant accounts.
If no contribution is made for four consecutive quarters and the account becomes inactive, only 10 percent of the usual AMC will be charged.
This move is designed to reduce the burden on subscribers who are not actively contributing but still hold an NPS account.
Why These Changes Are Being Introduced
According to the regulator, these updates are meant to simplify the fee structure and ensure consistency across all Central Recordkeeping Agencies (CRAs).
The goal is to make charges more transparent and eliminate unclear or uneven fee practices across different types of accounts.
What This Means for Subscribers
In simple terms, some NPS users—especially those with Tier-II accounts or multiple schemes—may see a slight increase in charges from July 2026.
At the same time, small balance holders and dormant account users will get some relief through reduced or waived charges.
Experts suggest that subscribers should review their NPS structure carefully and understand how these changes could impact their long-term retirement savings.
