The Pension Fund Regulatory and Development Authority has announced new rules to make charges under the National Pension System clearer and more transparent.
These changes will come into effect from July 1, 2026.
The main goal is to remove confusion and ensure that all subscribers understand how fees are applied.
AMC Changes for Tier I and Tier II Accounts
One of the biggest updates is related to Annual Maintenance Charges (AMC).
Now, AMC for Tier II accounts will be similar to Tier I accounts within the same category (government or private).
There is also good news for small investors.
If your Tier II account balance is ₹1,000 or less at the end of a quarter, you will not be charged any AMC.
Separate Charges for Each Scheme
Even if you have one PRAN (Permanent Retirement Account Number), each scheme under it will be treated separately.
This means if you invest in multiple schemes, AMC may be charged for each one individually.
So, having more schemes under the same PRAN could increase the total charges.
Relief for Dormant Accounts
There is a major benefit for inactive users.
If no contribution is made for four consecutive quarters, the account becomes dormant.
In such cases, only 10% of the normal AMC will be charged until the account becomes active again.
This helps reduce the burden on users who are not actively investing.
No Extra Charges for Multiple Accounts
There is clarity on PRAN-related charges as well.
You only pay the PRAN opening fee once when the account is created.
If you later open or activate additional accounts (Tier I or Tier II) under the same PRAN, no extra fee will be charged.
Zero Charges for Some Schemes
Certain schemes will not have any AMC if the balance is zero.
This includes:
Atal Pension Yojana
NPS-Lite
This is especially helpful for low-income subscribers.
How Charges Will Be Collected
Charges will be applied at the end of every quarter.
They may either be paid by the employer or deducted directly from the subscriber’s account.
What This Means for You
These new rules make the system more transparent and easier to understand.
Small investors benefit from lower or zero charges. Inactive users get relief with reduced fees.
At the same time, users with multiple schemes get clarity on how charges apply.
Overall, these changes aim to make the pension system simpler, fairer, and more user-friendly.
