NPS: Big news for NPS investors. Great news for NPS and NPS Lite subscribers! PFRDA has given everyone a bit more breathing room by pushing back the revised PoP charge launch from October 1 to December 1, 2026. The updated fee structure includes a ₹200 onboarding charge, an annual maintenance fee of 0.20% of AUM, and a possible ₹100 fee for digital registration. Let’s dive into what charges apply and which accounts get a free pass.
The Pension Fund Regulatory and Development Authority (PFRDA) has postponed when the new PoP (Point of Presence) charges take effect. Originally set to roll out on October 1, 2026, the implementation has been moved to December 1, 2026. This extension gives subscribers more time to get familiar with and get ready for the updated charge structure. PFRDA shared this update through a circular released on October 26, 2026. All NPS and NPS Lite schemes will be affected by this change. It’s important to know that PFRDA only adjusted when the rules start—the actual charges and other details from the August 28, 2026 circular stay exactly the same.
What’s the onboarding charge amount for NPS?
Under the new charge framework, people opening an NPS account through a PoP will pay a one-time onboarding fee of ₹200 per PRAN (Permanent Retirement Account Number). Rather than taking the full amount upfront, it’ll be collected gradually. Every quarter, ₹50 gets deducted by cancelling units from your account. The CRAs (Central Recordkeeping Agencies) then pass along the collected amount to the relevant PoPs during the month after the quarter when you completed your onboarding.
How much will be the charge on NPS every year?
The new PFRDA provisions also mention annual charges. Under this, an annual charge of 0.20% of the total assets under management (AUM) has been fixed for accounts other than dormant accounts. This charge will be adjusted against the net asset value (NAV) and paid to the PoP every quarter. This means that the charge will be adjusted against the NAV of the investment rather than being billed directly as a lump sum. The actual impact on a subscriber will depend on the investments in their account and the applicable regulations.
Will there be charges on dormant NPS accounts also?
PFRDA has clarified that these PoP charges will not be levied on dormant accounts. As per the rules, dormancy will be determined by considering accounts held in different CRAs based on a subscriber’s PAN. If no new contributions are made for four consecutive quarters after making a contribution in a quarter, such an account may be identified as dormant at the end of the quarter. Therefore, it is important to understand the applicable definition and account status before concluding inactivity based solely on the absence of transactions in a single account.
What is the minimum contribution required in NPS?
The PFRDA circular also states the minimum contribution amount:
When opening an account for the first time:
A minimum contribution of Rs 250 is required.
Later contributions:-
The minimum amount for each contribution is 10.
Keep in mind that minimum contribution requirements and PoP charges are different things. Whether or not a fee applies to an account will depend on the relevant provisions and the account’s status.
What should NPS subscribers do now?
The new PoP charges are scheduled to come into effect from December 1, 2026. Therefore, NPS and NPS Lite subscribers should check their account status, registration method, and applicable charges with the respective PoP. Subscribers who registered digitally and have not contributed for a long time should especially confirm the rules applicable to their account.