New Delhi: The Pension Fund Regulatory and Development Authority (PFRDA) has updated fees for opening a National Pension System (NPS) account. The updated fees will be applicable for both online and offline methods.
“The charges that can be collected for services rendered in respect of the NPS-Vatsalya account at any time shall be the same as the charges that be collected under NPS- All Citizen Model as stipulated by the Authority from time to time,” states the PFRDA master circular released today.
These fees pertain to the NPS (All Citizen and Corporate) as well as the NPS-Lite models. The charges for services under the NPS-Vatsalya account align with those of the NPS-All Citizen model. The service charge came into effect from January 31, 2025.
PFRDA Fee Structure for Online and Offline NPS Registration
The fees for the initial registration of a NPS account may reach Rs 400. The initial contribution will invite a charge of up to 0.50 per cent of the contribution amount, a maximum limit of Rs 25,000. Notably, fees will be levied in all future contributions.
According to PFRDA rules, a fee of up to Rs 30 may be applicable for non-financial transactions while the e-NPS transactions will invite up to 0.20% charges of the contribution, with a maximum limit of Rs 10,000. This fee is collected upfront and is meant for NPS All Citizen and Tier – II Accounts). The processing of exit/withdrawal from a NPS account will invite upto 0.125 per cent charge of corpus, subject to maximum Rs 500.
NPS is mandatory for Central Government employees who joined services on or after January 1, 2004. The pension scheme has been adopted by almost all the state government for their employees. The government has allowed any Indian citizen (resident/non-resident/overseas) aged between 18-70 years to subscribe for a NPS plan.
NPS Vatsalya Scheme – a new pension scheme for children in the age group of 0 to 18 years – was launched by the central government on September 18, 2024. In this scheme, a parent can invest a minimum of Rs 1000 per month and a maximum with no limit. As per the rules, “This account will be operated by the parents until the child turns 18, after which the account will be in the name of the children. Once the child turns 18, the account can be seamlessly converted into a regular NPS account or a non-NPS scheme.”
The PFRDA has updated fees for opening National Pension System (NPS) accounts, effective January 31, 2025. These changes apply to online and offline registrations, encompassing NPS All Citizen, Corporate, Lite, and Vatsalya models. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
