NPS New Charges: Pension Fund Regulatory and Development Authority (PFRDA) has changed the charges for opening National Pension Scheme (NPS) account both online and offline.
NPS New Charges: Pension Fund Regulatory and Development Authority (PFRDA) has changed the charges for opening National Pension Scheme (NPS) account through both online and offline methods. These latest charges are for both NPS (All Citizens and Corporate) and NPS-Lite models. Please note that the charge for opening NPS-Vatsalya account will be the same as NPS-All Citizens model. All these new charges will be effective from January 31, 2025.
Finance Minister gave the proposal in the budget
While presenting the budget on February 1, Finance Minister Nirmala Sitharaman proposed that those investing in the NPS Vatsalya scheme will get an additional tax exemption of up to Rs 50,000 under section 80 CCD (1B) of the Income Tax Act, 1961. The same benefit is also available to regular contributors of NPS.
According to the PFRDA Master Circular issued on February 4, 2025, the charge levied on the service of NPS-Vatsalya account will be the same as the charge levied under the NPS-All Citizen Model.
Charges for opening NPS account
First of all, a charge of up to Rs 400 is taken for registration. A charge of 0.50 percent will be levied on the first contribution made accordingly. Its maximum limit is Rs 25,000. Charges will be levied on all subsequent contributions as well.
Non-financial transactions
A fee of up to Rs 30 will be charged for non-financial transactions. The persistency charge applicable on the NPS All Citizen Model varies depending on the annual contribution. If the annual contribution is between Rs 1,000 and Rs 2,999, then a charge of up to Rs 50 will be levied on it every year. A charge of Rs 75 will have to be paid for annual contribution between Rs 3000 and Rs 6000 and a maximum charge of Rs 100 will have to be paid for contribution above Rs 6000. These charges are deducted through unit cancellation.
e-NPS Transactions
A fee of up to 0.20% of the contribution is applicable for e-NPS transactions. Its maximum limit is Rs 10,000. This fee is charged in advance and is applicable only to NPS All Citizen and Tier-II accounts.
D-Remit Contribution
A trail commission is also levied for D-Remit contributions up to 0.20 per cent of the contribution, subject to a maximum of Rs 10,000 and is deducted through units from time to time.
PROCEDURE FOR PROCESSING EXIT
A fee of up to 0.125 per cent of the total amount is applicable for processing the withdrawal, with a maximum limit of Rs 400. This is also taken in advance.
Durability Fee
The permanence fee is payable only if a customer remains connected to a POP (Point of Presence) for more than six months in a financial year. The minimum contribution per transaction is Rs 500, and the minimum annual contribution is Rs 1,000.
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