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These NPS charges revised for National Pension System subscribers – Check new rates

The NPS POP charges have been recently revised by PFRDA and the new charges will be applicable for All Citizen and Corporate models.

NPS charges, National Pension System subscribers, Point of Purchase, POP service charges
Some NPS charges are levied at the Point of Purchase level while some others are levied at the CRA level.

The National pension system (NPS) is a low-cost investment that provides an access to investors to accumulate funds for retirement. In terms of costs, NPS is known for its ultra low fund management charge that goes a long way in determining the fund value in the long term.

However, there are a few other charges as well in NPS, some of which are levied at the Point of Purchase (POP) level while some at the CRA level.

Points of Presence (POPs) are places such as banks appointed by PFRDA where one goes to open an NPS account. POPs provide the services like subscriber registration, issuance of statements etc.

Some of the NPS charges are to be paid upfront by the NPS subscriber while some others are deducted from the fund value via cancellation of units.

Of the many charges levied in NPS, one is the Point of Purchase (POP) service charges. The NPS POP charges have been recently revised by PFRDA and the new charges will be applicable for All Citizen and Corporate models.

The Pension Fund Regulatory and Development Authority (PFRDA) has increased the charges of NPS-related services offered at point of presence (POP) outlets with effect from February 1, 2022

Point of Purchase (POP) – From February 1, 2022

A) Initial subscriber registration: Rs 200 – Rs 400 ( Negotiable with slab only; collected upfront)

B) Initial and subsequent transactions: Upto 0.50% of contribution (Min. Rs. 30 Max. Rs. 25000 ( Negotiable with slab only; Non-Financial Rs. 30) (collected upfront)

C) Persistency: For more than 6 months in a FY and minimum contribution of Rs 1000 to Rs 2999: Rs. 50 per annum (Through cancellation of units only for NPS All Citizen)

For minimum contribution of Rs 3000 to Rs 2999: Rs. 50 per annum

For minimum contribution of Rs 3000 to Rs 6000: Rs. 75 per annum

For minimum contribution of above Rs 6000: Rs. 100 per annum

D) Subsequent contribution through eNPS: 0.20% of contribution (Min. Rs.15 Max. Rs.10,000) (collected upfront)

E) A new service charge has been introduced for ‘processing of exit and withdrawal’ services and will be collected upfront. The charge will be 0.125 per cent of corpus with a minimum charge of Rs 125 and is capped at Rs 500.

Importantly, effective from February 15th, 2022, charges on all subsequent contributions through eNPS have been enhanced to 0.20 per cent of the contribution, subject to a minimum of Rs 15 and maximum charge of Rs 10,000. This service charge will not be applicable for subscribers registered in eNPS.

Point of Purchase (POP) – Before February 1, 2022

A) Initial subscriber registration: Rs 200 (collected upfront)

B) Initial and subsequent transactions: 0.25% of contribution (Min. Rs. 20 Max. Rs. 25000; Non-Financial Rs. 20) (collected upfront)

C) Persistency: For more than 6 months in a FY and minimum contribution of Rs 1000: Rs. 50 per annum ( Through cancellation of units)

D) Subsequent contribution through eNPS: 0.10% of contribution (Min. Rs.10 Max. Rs.10,000) (collected upfront)

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