If you are investing in NPS for your retirement, this update is important for you. The pension regulator, the Pension Fund Regulatory
and Development Authority (PFRDA), has made a big change in the rules related to investment management fees charged by pension funds. This change affects the cost of managing your investment.
From April 1, 2026, the investment fees will no longer be the same for everyone. The fees will now be divided into two categories—one for government employees and another for private sector investors.
This means the charges you pay may differ based on your category.
Simplified Fee Payment Process
The process of paying fees has been made easier. You do not have to worry about paying extra charges separately anymore. All fees will be automatically deducted from your NAV (the value of your investment).
This new rule will apply to both regular NPS accounts and the NPS Vatsalya scheme for children.
Temporary Service Disruptions
To apply these new changes, central recordkeeping agencies are updating their systems. During this period, some NPS services
and transactions will be temporarily unavailable. Investors are advised to plan their important activities in advance.
Here are the key service disruptions:
Inter-CRA shifting will be stopped from March 25 to April 1, 2026
Portfolio rebalancing will not be available from March 28 to April 1
Services like subscriber shifting, one-way switch, and scheme preference changes will stop from March 27 at 10:30 AM
Tier 2 Withdrawal and Service Resumption
If you want to withdraw money from your Tier 2 account, you will need to wait. This service will be unavailable from March 31 at 10:30 AM until April 1. However, new registrations and deposits will continue as usual during this time.
All services will start again from April 2, 2026. After that, you can carry out all transactions normally.
This step by the Pension Fund Regulatory and Development Authority (PFRDA) is aimed at making pension fund fees more transparent and accurate. If you are planning to make any changes to your investments, keep these dates in mind.
