NPS Fees and Charges

NPS Charges and Fees at a Glance

The applicable charges and fees can differ based on the subscriber category, NPS account and service used.

*PoP charges effective from October 1, 2026. For eShramik PRANs, account opening is ₹15 per account and annual maintenance is ₹15 p.a. For government entities under the Corporate sector, PoP charges are ₹500 p.a. per PRAN. All charges are exclusive of taxes. The CRA figures are upper caps, and a CRA may charge less.

NPS CRA Charges

A Central Recordkeeping Agency (CRA) maintains subscriber records linked to the Permanent Retirement Account Number (PRAN) and records contributions, withdrawals and other account activities. It also provides customer service facilities and account statements to subscribers of NPS.

PFRDA issued a clarification for CRA charges on 29 April 2026. PRAN opening charge is applicable only when the original PRAN is generated. Opening a separate Tier I or Tier II account within an existing PRAN does not attract another account opening charge. 

The CRA charges levied on NPS subscribers are summarised below.

The CRA recovers these charges by cancelling units from the subscriber’s NPS account on a quarterly basis. All charges are exclusive of GST and subject to change.

The annual maintenance charge (AMC) for Tier II is aligned with the applicable Tier I AMC for the relevant sector. However, no AMC is charged on a Tier II account where the corpus is up to ₹1,000 at the end of a quarter. Each pension scheme maintained within a PRAN is treated as a separate account for AMC purposes.

For dormant accounts, the AMC is reduced to 10% of the applicable AMC. A dormant account is one where no contribution is received for four consecutive quarters and which is flagged as dormant in the CRA system during the first week of the subsequent quarter. The revised dormant-account treatment is effective from 1 July 2026.

NPS PoP Charges

A Point of Presence (PoP) acts as a service interface for NPS subscribers. PFRDA revised the PoP charge structure for all schemes under NPS and NPS Lite through its circular dated 28 August 2026, effective from 1 October 2026. Charges for ‘4A Schemes’ continue to be governed by their respective guidelines and circulars. 

GST and other applicable taxes are additional. Minimum contribution amounts are requirements for subscribers, not charges. The reduced ₹100 onboarding charge applies where permitted under PFRDA's prescribed conditions. 

Subscribers onboarded through e-NPS and making subsequent contributions through e-NPS or D-Remit are not liable to pay PoP charges. Subscribers onboarded through a PoP remain liable for the applicable charges even if subsequent contributions are made through e-NPS or D-Remit. Dormant accounts, as defined under the applicable PFRDA rules, are exempt from PoP charges. 

NPS Fund Management Charges

Pension funds manage the investments made under NPS. The fee charged for this service is called the Investment Management Fee (IMF).

PFRDA revised the IMF applicable to non-government sector subscribers from 1 April 2026, while the existing government-sector IMF structure continues for a period of five years. The rates differ between government and non-government sector subscribers and are linked to the assets under management (AUM) slab.

1. IMF for Non-Government Sector Subscribers

   AUM slab	IMF
   Up to ₹25,000 crore	0.12%
   Above ₹25,000 crore to ₹50,000 crore	0.08%
   Above ₹50,000 crore to ₹1,50,000 crore	0.06%
   Above ₹1,50,000 crore	0.04%

   *Investment Management Fees are applicable from 1 April 2026, as per PFRDA.

2. IMF for Government Sector Subscribers

   AUM slab	IMF
   Up to ₹10,000 crore	0.09%
   Above ₹10,000 crore to ₹50,000 crore	0.06%
   Above ₹50,000 crore to ₹1,50,000 crore	0.05%
   Above ₹1,50,000 crore	0.03%

   *Government-sector IMF rates remain unchanged from the previous structure and continue to apply from 1 April 2026, as per PFRDA. 

   The existing IMF structure for government sector subscribers under composite schemes continues. The same government-sector rate applies to subscribers using Active Choice or Auto Choice with 100% allocation to government securities.

   The IMF is different from the annual fee payable by pension funds to PFRDA. That annual fee remains 0.015% of AUM or ₹10 lakh per year, whichever is higher, plus applicable taxes and charges.

NPS Transaction and Other Applicable Costs

NPS involves different intermediaries, so transaction-related costs can arise depending on the service used. These costs should not be confused with the fund management fee or PoP annual charge.

Charges may relate to:

• Account-related transactions
• Contribution processing
• Recordkeeping services
• Changes or other subscriber service requests

The deduction method depends on the charge. For example, PoP annual charges are adjusted through NAV, while the onboarding charge is recovered through unit cancellation. 

All subscribers should check the current PFRDA charge structure before carrying out a transaction. Regulatory circulars can adjust charges, as shown with the 2026 CRA and PoP changes.

How NPS Charges Affect Your Investment

Some NPS charges are a percentage of the corpus, while others are fixed amounts. Over a long period, ongoing costs can reduce the value of the retirement corpus.

For example, the updated PoP annual charge is 0.20% of AUM and the investment management fee is specifically defined for pension funds. These charges have separate objectives and should not be combined when comparing NPS expenses. Check the types of charges listed below before opening an account. 

1. Applicable CRA charges for the account.
2. Current PoP charges and effective date.
3. Applicable pension fund IMF.
4. GST and other taxes.
5. Method used for deducting each charge.
6. Whether any exemption or separate rule applies.

The actual impact depends on the account value, applicable intermediary charges, transaction frequency and investment period.

Subscribers can check the latest applicable charges through official PFRDA and NPS sources before opening an account or making a transaction.

The PFRDA has also asked PoPs to publish their amended charge structure on their website and indicate the same during the digital onboarding.