NPS: The Pension Fund Regulatory and Development Authority (PFRDA) has implemented significant modifications to the corporate scheme of the National Pension System (NPS). The scheme is now categorized into two sections: government entities and non-government legal entities. Furthermore, several important NPS fees have been updated. These new regulations will take effect on January 1, 2026.
In a circular released on March 10, 2026, PFRDA announced that the current corporate category of NPS will be divided into two segments.
- Government Entities
- Legal Entities Other than Government
What constitutes a government institution?
Under the new regulations, a government entity is defined as any organization that is owned or controlled by the central or state governments. This encompasses government companies, statutory bodies, corporate entities, and other government organizations. Central Public Sector Enterprises (CPSEs) and State Public Sector Enterprises (SPSEs) are also included in this classification.
According to PFRDA, entities that were previously registered under the corporate model of NPS but now operate as an extension of the government will be incorporated into the government model of NPS. Employees of these entities will not be associated with a Point of Presence (PoP), meaning they will not incur any PoP-related fees.
Revisions to NPS charges as well
PFRDA has also updated the PoP charge structure for NPS. For employees of non-government organizations, the annual fee is set at 0.20% of Assets Under Management (AUM). This fee will be adjusted according to NAV and paid to the PoP on a quarterly basis. However, this fee will not be applicable to dormant accounts.
New fees for the All Citizen model
Additionally, new charges have been established for the NPS All Citizen Model, NPS Vatsalya, and NPS Lite accounts. A one-time onboarding fee of Rs 200 is required for opening a new account, while a reduced fee of up to Rs 100 applies for digital account openings.
Furthermore, the All Citizen Model requires a minimum contribution of Rs 250 at account opening, and a minimum contribution of Rs 10 thereafter. PFRDA has also clarified that investors who open accounts through e-NPS and further invest through the same platform will not have to pay PoP related charges.
