NPS new rules will change how subscribers choose and compare pension schemes, with the pension regulator introducing five broad scheme types and new equity-based categories.
A one-time onboarding charge of Rs 200 per PRAN will also apply from October 1, 2026 for registrations through a Point of Presence.
The Pension Fund Regulatory and Development Authority (PFRDA) issued the new framework on August 28, 2026.
The changes are aimed at making NPS schemes easier to understand, compare and select based on investment risk and equity exposure.
NPS New Rules Divide Schemes Into 5 Types
Under the revised framework, NPS schemes will be presented under five broad types: Lifecycle-based Schemes, Active Choice, NPS Sanchay, Multiple Scheme Framework (MSF) and 4A Schemes.
Lifecycle-based schemes automatically adjust the mix of equity, corporate bonds and government securities according to the subscriber’s age.
Active Choice allows subscribers to decide their allocation among the available asset classes, within the limits prescribed by PFRDA.
NPS Sanchay is designed for the informal sector with a predefined investment pattern.
The 4A category covers curated or thematic schemes such as NPS Vatsalya, NPS Swasthya and NPS MSME.
Five Equity Categories Show Risk Levels
The MSF schemes will now be classified into five categories based on their equity exposure.
Category A will have 80% to 100% equity exposure and will be classified as aggressive growth with very high risk.
Category B will have 60% to 80% equity exposure and will carry a high-risk profile.
Category C will have 35% to 60% equity and will be treated as balanced growth with medium risk.
Category D will have 10% to 35% equity and will be classified as conservative.
Category E will have 0% to 10% equity and will be debt-oriented. A scheme’s equity mandate must fit within one prescribed category.
The new structure is intended to make the level of market exposure clearer before an investor selects a scheme.
Subscribers will be able to compare important details such as historical returns, benchmark performance, charges, riskometer and assets under management.
Rs 200 NPS Onboarding Charge From October
From October 1, 2026, subscribers registering for NPS through a Point of Presence will face a one-time onboarding charge of Rs 200 for each PRAN.
The full amount will not be taken at once.
It will be recovered through cancellation of units at Rs 50 per quarter by Central Recordkeeping Agencies, with the amount paid to the Point of Presence after the relevant quarter.
For subscribers completing onboarding through a fully digital, non-face-to-face process, a reduced one-time charge of Rs 100 may apply, depending on the terms determined by PFRDA.
The revised structure also provides for an annual charge of 0.20% of assets under management for applicable NPS and NPS Lite schemes, payable to the Point of Presence through the NAV mechanism. Dormant accounts will not attract this charge.
More Information Before Choosing a Scheme
The new framework requires subscriber-facing platforms to present NPS options in a standard sequence.
Investors will first see the scheme type and category before selecting a pension fund.
The platforms are also required to provide information such as scheme name, launch date, historical returns, benchmark returns, applicable charges, riskometer and assets under management.
This is intended to give subscribers more information before making an investment choice.
