The Pension Fund Regulatory and Development Authority (PFRDA) has announced changes to how charges for Points of Presence (PoPs) are collected from National Pension System (NPS) subscribers, effective October 1, 2026. This revision standardizes fees for eligible NPS and NPS Lite accounts, impacting how investors interact with banks and other intermediaries.
New Onboarding Fee Structure
Opening an NPS account through a PoP now incurs a one-time onboarding fee of Rs 200 per Permanent Retirement Account Number (PRAN). This fee is not paid upfront; instead, Central Recordkeeping Agencies (CRAs) recover it in four quarterly installments of Rs 50 each by cancelling units from the subscriber’s holdings. The collected amount is then transferred to the relevant PoP in the following month.
Previously, charges varied depending on whether an investment fell under a common scheme or one covered by the Multiple Scheme Framework. PFRDA has eliminated this distinction under the revised framework.
Understanding Points of Presence
PoPs are authorized intermediaries that handle various NPS-related services for subscribers. Banks, financial institutions, and registered entities can operate as PoPs, helping customers open NPS accounts, make contributions, and manage service requests or account-related activities.
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The revised framework mainly affects investors who rely on bank branches or similar PoP-assisted channels for their pension accounts rather than handling everything online.
Annual Charges Adjusted Through NAV
PFRDA has set the annual PoP charge at 0.20% of assets under management for eligible NPS and NPS Lite schemes. This fee is adjusted through the scheme’s net asset value (NAV) rather than appearing as a separate transaction in an investor’s account. It is calculated and paid to the respective PoP every quarter, with applicable GST and other taxes levied separately.
While the annual fee affects the overall value of holdings, it may not be visible as a direct deduction in investors’ accounts. The impact shows up in the NAV calculation instead.
The shift away from scheme-based distinctions reflects broader regulatory efforts to simplify fee structures across financial products. Individual investor experience will depend on how their specific PoP implements the changes.
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Digital Account Opening
For accounts opened through a completely digital, non-face-to-face process, a separate one-time charge of Rs 100 may apply. Whether this charge kicks in depends on conditions prescribed by PFRDA at the time of the PoP registration and any subsequent regulatory directions.
For Subscribers
New investors should confirm if their account is being opened through a PoP or a fully digital route before completing the onboarding process. Existing subscribers should understand the channel through which their NPS account was originally opened, as this determines whether PoP charges apply to them.
PFRDA has directed PoPs to prominently display their revised charges on their websites. Subscribers can compare applicable charges and understand cost implications before opening an account or using PoP-assisted services from October 1, 2026. Those with questions should reach out directly to their account provider or the relevant CRA.
