New Delhi: If you are considering investing in the NPS, this news will prove to be extremely useful for you. New rules regarding the charges applicable to your account have now been clarified. It is crucial for you to understand the essential details associated with the NPS. The PFRDA has provided information regarding the specific charges—both in terms of amount and type—that will be levied henceforth.
Key Highlights
What This Means For You
| Subscriber Type | Impact |
|---|---|
| 🏛️ Government employees | Tier II AMC is now the same — simpler structure |
| 💼 Private sector | Equal treatment — no differential charges |
| 😴 Inactive subscribers | Massive relief — only 10% AMC on dormant accounts |
| 👴 APY/NPS-Lite users | Zero balance = Zero AMC — complete protection |
| 📋 Multi-account holders | Each account is charged separately — plan accordingly |
💡 Key Takeaways
- 📅 Mark July 1, 2026 — new charge rules kick in from this date
- 💰 Tier II now cheaper for low-balance holders (≤₹1,000 = free)
- 😴 Dormant accounts protected — only 10% AMC instead of full charge
- 🆓 PRAN opening is one-time — no repeated charges for adding accounts
- 🏦 APY & NPS-Lite zero-balance accounts are completely exempt
This will help resolve any confusion you may have. It will also make it much easier for you to understand your pension account. The Pension Fund Regulatory and Development Authority (PFRDA) has clarified the new rules concerning the charges applicable under the NPS, or National Pension System.
In a circular issued on April 29, it was stated that charges will now be determined based on the specific type of account and the prevailing circumstances. Consequently, you need to be aware of these significant changes.
Know the Major Changes
Did you know that the Annual Maintenance Charge (AMC) for a Tier II account will now be on par with that of a Tier I account? The charges will remain identical for both government and private sector subscribers. However, if the balance in a Tier II account is 1,000 rupees or less, no AMC will be levied on it.
Charges Applicable to Each Account
The PFRDA has clarified that if you hold multiple accounts under a single PRAN (Permanent Retirement Account Number), each account will be treated as a separate entity, and the AMC will be applied to each account individually. If there are no contributions to your account for four consecutive quarters, it will be classified as a ‘dormant’ account.
Only 10 per cent of the standard AMC will apply to such dormant accounts. If you resume making contributions, the account will become active again starting from the subsequent quarter. This rule is set to come into effect from July 1, 2026. The charge for opening a PRAN will be levied only once—at the time of initial registration. Subsequently, no additional fee will be charged for adding a Tier I or Tier II account.
Relief for APY and NPS-Lite Users
If, for any reason, your account is held under the Atal Pension Yojana (APY) or NPS-Lite and has a zero balance, no AMC will be levied on it. These charges will be collected at the end of each quarter. The collection will be facilitated either through your employer or by direct deduction from your account.
