The new charges, already applicable from January 1, define how intermediaries can collect fees from subscribers under the All Citizen model of NPS.
The revised structure introduces a one-time onboarding charge and an annual asset-based fee, which will be collected through the NPS system.
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One-time onboarding fee
Subscribers opening a new NPS account through a PoP will pay a one-time onboarding charge of ₹200 per account. This fee will be deducted in instalments equivalent to ₹50 per quarter through unit cancellation by the Central Recordkeeping Agency.
However, if the onboarding process is completed through a fully digital, non-face-to-face mode, the onboarding charge may be reduced to ₹100, subject to approval by the regulator at the time of PoP registration.
Annual fee linked to account value
In addition to the onboarding fee, PoPs can charge an annual fee of 0.20% of the assets under management (AUM) in the subscriber’s NPS account.
- This fee will be adjusted through the net asset value (NAV) of the scheme.
- The charge will be paid quarterly to PoPs.
- The fee applies to all existing NPS accounts, except dormant accounts.
Dormant accounts exempt from charges
Accounts that remain inactive will not be charged the annual PoP fee. Under the rules, an account becomes dormant if there are no contributions for four consecutive quarters after a contribution has been made.
Minimum contribution requirements
The circular also reiterates minimum contribution thresholds for NPS accounts under the All Citizen category, including NPS Vatsalya and NPS Lite:
- ₹250 minimum contribution at the time of onboarding
- ₹10 minimum for subsequent contributions
When PoP charges do not apply
Subscribers who open accounts through the e-NPS platform and continue making contributions digitally through e-NPS or D-Remit will not have to pay PoP charges.
However, subscribers who open accounts through a PoP but later make contributions digitally will still be subject to PoP charges under the revised structure.
What it means for subscribers
For retail NPS investors, the changes mainly clarify and standardise the fee structure for intermediaries that facilitate account opening and servicing. The move also encourages digital onboarding and contributions, which may reduce the costs associated with using PoP intermediaries.
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