PFRDA Announced New Charges for NPS, NPS Lite, NPS Vatsalya Know the details

Nps charges: Pension Fund Regulatory and Development Authority (PFRDA) has made changes to the charges for opening the National Pension Scheme (NPS) account in both online and offline methods. This is the latest fee for both NPS (all citizens and corporates) and NPS-light models. Let us know that the NPS-All Citizen model will be charged as much as the NPS-Vatsalya account. All these new charges will be effective from January 31, 2025.

Finance Minister proposes in budget

Finance Minister Nirmala Sitharaman, while presenting the budget on 1 February, proposed that those investing under the NPS Vatsalya Yojana will get an additional 50,000 discount on tax under Section 80 CCD (1B) of the Income Tax Act, 1961. Regular contributors of NPS also get the same benefit.

According to the PFRDA Master Circular released on February 4, 2025, the charge taken on the service of NPS-Vatsalya account will be similar to the charge charged under the NPS-All Citizen Model.

Charge for opening NPS account

First, a charge of up to Rs 400 is already taken for registration. According to this, 0.50 percent charge will be charged on the first contribution. Its maximum limit is Rs 25,000. Even after this, all contribution will be charged.

Non-financial transactions

A fee of up to Rs 30 will be charged for non-financial transactions. Persistance charge applicable to NPS All Citizen models varies from the basis of annual contribution. If the annual contribution is between Rs 1,000 to Rs 2,999, then it will be charged up to Rs 50 every year. For annual contribution between Rs 3000 and 6000, a maximum charge will have to be paid up to Rs 100 for contribution of Rs 75 and more than Rs 6000. These charges units are cut through cancellation.

E-nPS transaction

The fee of up to 0.20 percent of the contribution to E-NPS transactions applies. Its maximum limit is Rs 10,000. This fee is already charged and applies only to NPS All Citizens and Tier-II accounts.

De-rest contribution

A trail commission for D-Remit Contribution is also imposed up to 0.20 percent of the contribution, which is a maximum limit of Rs 10,000 and is cut from time to time through units.

Processing exit process

For the withdrawal process, a fee of up to 0.125 % of the total amount is applied, the maximum limit is Rs 400. It is also already taken.

Durability fee

The stability fee is only payable when a customer is connected to POP for more than six months in a financial year. The minimum contribution per transaction is Rs 500, and the minimum annual contribution is Rs 1,000.