NPS New Rules From October 1, 2026: PFRDA Revises PoP Charges; Check What Changes for Subscribers

The Pension Fund Regulatory and Development Authority (PFRDA) has revised the way charges linked to Points of Presence (PoPs) will be collected from National Pension System (NPS) subscribers. The new framework will come into effect from October 1, 2026, and will bring a more standardised fee structure for eligible NPS and NPS Lite accounts.

For NPS investors, the most important change is that the PoP charge will no longer be based on whether an investment is held under a common scheme or a scheme covered by the Multiple Scheme Framework. The regulator has also changed the manner in which the onboarding fee will be recovered from subscribers.

NPS New Rules From October 1: Check Revised PoP Charges

Under the revised structure, opening an NPS account through a Point of Presence will attract a one-time onboarding fee of Rs 200 for each Permanent Retirement Account Number (PRAN).

However, subscribers will not have to pay the entire amount at the time of account opening. The Central Recordkeeping Agencies (CRAs) will recover the charge in four instalments of Rs 50 each per quarter by cancelling units from the subscriber's NPS holdings.

The amount collected from the subscriber will subsequently be transferred to the concerned Point of Presence in the month following the quarter in which the onboarding is completed.

Point of Presence in NPS: Understand What Is It

A Point of Presence is an authorised intermediary that provides various NPS-related services to subscribers. Depending on their authorisation, banks, financial institutions and other registered entities can act as PoPs.

These entities can assist customers with opening an NPS account, making contributions and handling service requests and other account-related activities. The revised framework is therefore important for investors who use bank branches or other PoP-assisted channels for their NPS accounts.

NPS Annual PoP Charge: 0.20% of Assets Under Management

PFRDA has also prescribed an annual PoP charge of 0.20% of the assets under management (AUM) for eligible NPS and NPS Lite schemes. Unlike a charge that appears as a separate transaction in an investor's account, this fee will be adjusted through the scheme's net asset value (NAV). The amount will be calculated and paid to the respective PoP every quarter.

Applicable GST and other taxes, wherever required, will be levied separately. Since the annual fee is adjusted through NAV, investors may not see a direct deduction from their cash balance, but the charge will have an impact on the value of their holdings.

NPS Digital Account Opening: What Charges Apply?

PFRDA has separately addressed accounts opened through a completely digital, non-face-to-face process. For such onboarding, a one-time charge of Rs 100 may be applicable. The actual applicability will depend on the conditions prescribed by PFRDA at the time of registration of the Point of Presence and subsequent regulatory directions.

What NPS Subscribers Should Know From October 1

The revised rules essentially change the way PoP-related costs are structured and recovered rather than changing the basic functioning of the NPS.

New investors should check whether their account is being opened through a Point of Presence or a fully digital route before completing the onboarding process. Existing subscribers should also understand the channel through which their NPS account was originally opened, as this can determine whether PoP charges apply to them.

PFRDA has directed Points of Presence to prominently display their revised charges on their websites. Subscribers can therefore compare the applicable charges and understand the cost implications before opening an account or using PoP-assisted NPS services from October 1, 2026.

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