NPS Charges: Pension Fund Regulatory and Development Authority (PFRDA) has changed the charges for opening National Pension Scheme (NPS) account both online and offline.
NPS 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. This latest charge is for both NPS (all citizens and corporate) and NPS-lite model. Let us tell you that the charge for opening NPS-Vatsalya account will be the same as NPS-All Citizen Model. All these new charges will be effective from January 31, 2025.
Finance Minister gave proposal in the budget
Finance Minister Nirmala Sitharaman, while presenting the budget on February 1, proposed that those investing in NPS Vatsalya Yojana 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 an NPS account
First of all, a charge of up to Rs 400 is already taken for registration. Accordingly, a charge of 0.50 percent will be levied on the first contribution made. 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. For annual contribution between Rs 3000 and Rs 6000, a charge of Rs 75 is applicable and for contribution above Rs 6000, a charge of up to Rs 100 is applicable. These charges are deducted by way of unit cancellation.
e-NPS Transactions
For e-NPS transactions, a charge of up to 0.20% of the contribution is applicable. Its maximum limit is Rs 10,000. This charge is collected upfront and is applicable only to NPS All Citizen and Tier-II accounts.
De-Remit Contribution
For de-remit contributions, a trail commission is also levied up to 0.20% of the contribution, with a maximum limit of Rs 10,000 and is deducted through units from time to time.
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 too is charged upfront.
Stability Fee
Stability fee is payable only if a customer remains connected with 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.