Pfrda new charges for nps: Pension Fund Regulatory and Development Authority (PFRDA) has announced new charges related to National Pension System (NPS), NPS Lite and NPS Vatsalya accounts. Under the new rules, the fees applied to different services for these accounts have been changed. These changes will be applicable from 31 January 2025. In particular, the NPS Vatsalya account charges have been kept similar to the NPS All Citizen Model. Complete information of these new charges is being given here.
New Charges related to NPS
PFRDA has issued a master circular to open NPS accounts and a change in the charges applicable to different services. These charge will apply to NPS All Citizen Models, Corporate Models and NPS Light accounts. At the same time, the same fees will be applicable for NPS Vatsalya accounts, which are applicable to the NPS All Citizen models.
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Fees on opening NPS account
The initial registration fee for opening NPS account will be up to Rs 400. Apart from this, a maximum of 0.50% fees will be charged on the initial contribution amount, the maximum limit will be Rs 25,000. This fee will also apply to all the contributions after this.
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Fees on non-financial transactions
A fee will be charged up to Rs 30 for non-financial transactions, such as a change in personal information. Also, only the per cent will be levied under the NPS All Citizen Model. If the annual contribution is between Rs 1,000 to 2,999, then the fee of Rs 50 per year will be charged. A maximum annual fee will be charged annually Rs 75 to Rs 3,000 to 6,000 annually and a maximum of Rs 100 on contribution of more than Rs 6,000. This fee will be deducted through unit cancellation.
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Fees on E-NPS transactions
0.20% fees will be charged on extra contribution made through E-NPS, the maximum limit will be Rs 10,000. This fee will be charged in advance and will be applicable only to NPS All Citizens and Tier-II accounts.
Fees on D-Remit contribution
0.20% fees will be charged on the contributions made through D-Remit, the maximum limit will be Rs 10,000. This fee will be deducted from time to time through unit deduction. This fee is also applicable only to NPS All Citizens and Tier-II accounts.
Exit processing fees
0.125% fee will be charged for withdrawal or exit processing from NPS account, the maximum limit will be Rs 500. This fee will be charged in advance.
Persity charge and other fees
Persity charge will be taken from customers who are connected to a particular point of presence (POP) for more than six consecutive months. Under this, minimum contribution per transaction is Rs 500 and annual contribution is necessary to be Rs 1,000. Apart from this, GST and other taxes will be charged separately on all fees.
Why did PFRDA change the charges
PFRDA says that the aim of the new charges is to make NPS more convenient and provide better services to customers. Apart from this, POP has been given exemption that they can compromise on fees by negotiating with customers, but this fee cannot exceed the maximum limit.
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How long will the new charges be implemented?
The new service charge released by PFRDA will be applicable from 31 January 2025. Earlier charge structure information can be obtained from Annex-I (Annexure I) given in Part V of Master Circular. The new charges implemented by PFRDA for NPS account holders will be implemented from 31 January 2025. In this, different fees have been fixed for NPS All Citizen Models, NPS Light and NPS Vatsalya accounts. The purpose of these changes is to provide more transparency and better services to the customers. If you are investing under NPS, then you need to know these charges.