PFRDA Announces Major Overhaul of NPS Charges Effective October 2026

The Pension Fund Regulatory and Development Authority (PFRDA) has unveiled a significant restructuring of the fees permitted for Point of Presence (PoP) entities under the National Pension System (NPS). The new framework, which aims to standardize the classification of schemes, is set to go into effect on October 1, 2026.

According to a circular issued by the regulator on August 28, 2026, the transition to the new fee structure will be implemented by Central Recordkeeping Agencies starting in the third quarter of FY 2026-27.

Key Changes to Onboarding and Annual Fees

Under the revised mandate, individuals registering for the NPS through a PoP will be subject to a one-time onboarding fee of Rs 200 per Permanent Retirement Account Number (PRAN). To ease the financial burden, this amount will not be deducted in a single installment. Instead, it will be recovered at a rate of Rs 50 per quarter through the cancellation of units within the subscriber’s account.

Furthermore, PoPs will now receive an annual management charge equivalent to 0.20% of the Assets Under Management (AUM) for all applicable schemes. This charge will be adjusted through the Net Asset Value (NAV) and remitted to the PoP on a quarterly basis.

For subscribers opting for a purely digital, non-face-to-face registration process, a reduced one-time onboarding fee of Rs 100 may apply, subject to terms specified by the PFRDA. It is important to note that all mentioned fees are exclusive of GST and other applicable taxes.

Exclusions and Exemptions

The PFRDA has provided clarity on who is exempt from these changes:

• e-NPS Users: Subscribers who initially opened their accounts through e-NPS and continue to make contributions via e-NPS or D-Remit are exempt from PoP charges. However, if an account was originally opened through a physical PoP, the subscriber remains liable for these fees regardless of the method used for subsequent contributions.
• Dormant Accounts: The new charges will not apply to accounts classified as “dormant.” The regulator defines a dormant account as one where no contributions have been made for four consecutive quarters.
• Special Schemes: The revised fee structure does not apply to “4A Schemes,” which include specialized products like NPS Vatsalya, NPS Swasthya, and NPS MSME. These will continue to be governed by their existing, independent regulatory guidelines.

Standardized Contributions

Alongside the fee changes, the PFRDA has set new minimum contribution thresholds. Subscribers are now required to contribute a minimum of Rs 250 at the time of onboarding, with all subsequent contributions set at a minimum of Rs 10.

The PFRDA has directed all PoPs to ensure their revised fee structures are displayed prominently on their official websites to ensure transparency for all subscribers. These new regulations effectively supersede the previous circular issued in March 2026.