NPS Charges Circular 2026
NPS Charges Circular 2026
The Pension Fund Regulatory and Development Authority (PFRDA) has issued a new circular revising the charge structure of Points of Presence (PoPs) under National Pension System (NPS). These revised charges apply to NPS All Citizen Model, Corporate Model, NPS Vatsalya and NPS Lite, and will be effective from 1 January 2026.
This article explains the circular point by point, in simple language, so that retail investors, parents and subscribers can clearly understand.
1. Why This Circular Was Issued
As per PFRDA regulations, PoPs (banks, post offices, pension funds, etc.) are allowed to collect charges from NPS subscribers only as permitted by PFRDA.
To bring uniformity and transparency, PFRDA has revised the PoP charge structure.
This circular replaces the earlier service charge circular dated 31 January 2025.
2. Schemes Covered Under This Circular
The revised charges apply to the following schemes:
NPS All Citizen Model
NPS Corporate Model
NPS Vatsalya
NPS Lite
3. Effective Date of New Charges
The revised charge structure is applicable from 1 January 2026.
4. Charges in the First Year of Onboarding
PoPs can choose one of the following two options for the first year:
Option 1: AUM-Based Charges
0.2% per annum of AUM (Assets Under Management)
Minimum charge: ₹30 per year
Charged quarterly on a pro-rata basis
For CPSE employees:
0.1% per annum of AUM
Minimum charge: ₹15 per year
Option 2: Flat Account Opening Charge
₹200 per new account
Collected in the month following onboarding
If this option is chosen, no AUM-based charge will be levied in the first year
5. Charges from Second Year Onwards
0.2% per annum of AUM (minimum ₹30)
For CPSE employees: 0.1% per annum of AUM (minimum ₹15)
Charged quarterly
Applicable only to active accounts
➡️ Dormant accounts will not be charged.
6. How Are Charges Collected?
Charges are deducted by cancellation of units from the NPS account.
Subscribers do not need to pay separately.
GST and other applicable taxes will be charged extra.
7. Meaning of “Per Annum” in This Circular
“Per annum (p.a.)” means four consecutive quarters.
It does not depend on financial year or calendar year.
8. Quarterly Charge Illustration
For common NPS schemes: 0.05% of AUM per quarter
For CPSE employees: 0.025% of AUM per quarter
9. Charges for Dormant Accounts
No PoP charges will be levied on dormant accounts.
An account is treated as dormant if:
No contribution is made for four consecutive quarters after a contribution
10. Minimum Contribution Requirement
No minimum contribution is required normally.
However, if a PoP opts for the ₹200 flat charge option in the first year:
Minimum contribution of ₹250 at the time of onboarding is required
11. e-NPS Subscribers – Important Clarification
Subscribers onboarded directly through e-NPS and contributing via e-NPS or D-Remit:
No PoP charges applicable
Subscribers onboarded through a PoP but contributing via e-NPS:
PoP charges will still apply
12. One-Time Declaration by PoPs
PoPs must inform CRAs by 15 January 2026 about:
Choice of charge structure for first year
Whether charges will be recovered from their own employees
Details of CPSE subscribers
13. Wrongly Collected Charges – What Happens?
If PoPs collect charges as per the old circular by mistake:
The amount must be credited back to the subscriber’s PRAN immediately
14. Mandatory Disclosure by PoPs
PoPs must display the updated charge structure:
On their websites
During digital onboarding via pop-up notifications
Staff must be informed immediately.
15. Legal Authority
This circular has been issued under Section 14 of the PFRDA Act, 2013.
Conclusion
The PFRDA Charges Circular effective January 2026 brings greater transparency, flexibility and uniformity in NPS service charges. Subscribers should understand how and when these charges apply to make informed long-term investment decisions.
This article is for awareness purposes only. Please consult your NPS service provider or advisor for personalised guidance.
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