SIMPLY 3 FINSERV PRIVATE LIMITED [CIN: U67190PB2022PTC056099] is an AMFI Registered Mutual Fund Distributors & SIF Distributor (ARN-249158)
Lokesh Malhotra [ARN-158405] | AMFI Registered Mutual Fund Distributor
The National Pension System (NPS) is designed for long-term retirement savings. While investment choice, risk and retirement objectives remain important, understanding the costs associated with maintaining an NPS account is equally relevant.
From 1 October 2026, the Point of Presence (PoP) charge structure for NPS is being revised. Here is what subscribers should know.
1. What Is Changing From 1 October 2026?
The revised framework introduces changes to the charges applicable through Points of Presence (PoPs).
One-Time Onboarding Charge
For onboarding through a PoP, the charge will be ₹200 per new PRAN.
For fully digital, non-face-to-face onboarding, a reduced charge of ₹100 may apply, subject to applicable terms.
The charge is recovered through unit cancellation by the Central Recordkeeping Agency (CRA), rather than necessarily being collected as a single upfront payment.
Annual PoP Charge
An annual charge of 0.20% per annum of the account value will apply to non-dormant accounts Charges are generally recovered quarterly through unit cancellation. GST and other applicable taxes are additional.
Dormant Accounts
Dormant NPS accounts will not attract PoP charges. An account may be treated as dormant based on the prescribed contribution inactivity criteria.
2. What About Minimum Contributions?
Under the revised framework, the minimum contribution is ₹250 at the time of onboarding and ₹10 for subsequent contributions, subject to the applicable NPS framework.
These contribution requirements should not be confused with the charges payable to the PoP.
3. Understanding PoP Charges and e-NPS
The applicable charges depend on how the NPS account is opened and serviced. e-NPS onboarding and subsequent e-NPS/D-Remit contributions generally do not attract PoP charges. However, if the account was originally opened through a PoP, applicable PoP charges may continue.
Subscribers should understand the applicable charges and how they are recovered before making an informed decision.
Key Takeaway
The revised NPS charge structure from 1 October 2026 makes it important for subscribers to understand the applicable charges, the onboarding route and how charges are recovered.
Disclaimer: Educational purposes only. It should not be construed as investment, tax, legal or retirement advice, or as a recommendation to invest in NPS. NPS is subject to applicable rules, regulations, charges and amendments issued by the relevant authorities from time to time. Investors should refer to the latest official NPS/PFRDA documents.
Mutual fund Investments are subject to market risks. Read all scheme-related documents carefully. Investments in Specialized Investment Fund involves relatively higher risk including potential loss of capital, liquidity risk and market volatility. Please read all investment strategy related documents carefully before making the investment decision.
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