The Pension Fund Regulatory and Development Authority has revised the fee structure for services provided by Central Recordkeeping Agencies under the National Pension System, Atal Pension Yojana, NPS-Lite, and Unified Pension Scheme.
The Pension Fund Regulatory and Development Authority (PFRDA) has revised the fee structure for services provided by Central Recordkeeping Agencies (CRAs) under the National Pension System (NPS), Atal Pension Yojana (APY), NPS-Lite, and Unified Pension Scheme (UPS). The new fee structure will come into effect from October 1, replacing the previous guidelines issued in June 2020.
What will the new charges be?
Fees for the government sector (NPS and UPS)
Fee for opening a PRAN account
– E-PRAN kit (default option): ₹18
– Physical PRAN card: ₹40
– Annual maintenance fee (AMC): ₹100 per account
– No charges will be levied on accounts with zero balance.
– Transaction fee: Nil
Fees for Atal Pension Yojana and NPS-Lite
– PRAN opening fee: ₹15
– Annual maintenance fee: ₹15
– Transaction fee: Nil
Fees for the Private Sector (NPS and NPS Vatsalya)
– PRAN opening fee:
– E-PRAN kit: ₹18
– Physical PRAN card: ₹40
– Transaction fee: Nil
Annual Maintenance Charge (AMC) – Based on Tier I Corpus:
– Nil balance: No charge
– ₹1 – ₹2,00,000: ₹100
– ₹2,00,001 – ₹10,00,000: ₹150
– ₹10,00,001 – ₹25,00,000: ₹300
– ₹25,00,001 – ₹50,00,000: ₹400
– Above ₹50,00,000: ₹500
Key Guidelines
1. This revised fee is the maximum limit. CRAs cannot charge more than this, but they can charge less or a negotiated fee (as per agreement with the employer, subscriber, or PoPs).
2. For the private sector, the AMC fee is slab-based and directly linked to the Tier I corpus.
3. For NPS subscribers (public sector), these fees will apply only during the accumulation phase (the period of contribution). Separate fees for the payout phase (pension disbursement period) will be determined later.
4. If any new service is introduced by CRAs, its fee will be based on actual cost, without any additional profit margin, and will require PFRDA approval.
5. All applicable fees must be clearly displayed on the CRAs’ official website and mobile app. Note that if the new rules reduce the fees, it will benefit investors as a larger portion of their contribution will be invested, resulting in better net returns. Conversely, if the fees increase, there will be a slight increase in costs, which may have a minor impact on long-term returns.
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