The Pension Fund Regulatory and Development Authority has overhauled the mechanism for collecting charges linked to Points of Presence for National Pension System subscribers. The updated framework is scheduled to take effect on October 1, 2026, introducing a more standardized fee schedule for eligible NPS and NPS Lite accounts. For investors, the most significant shift is that the PoP fee will no longer depend on whether funds reside in a common scheme or an option governed by the Multiple Scheme Framework. The regulator has also altered how onboarding fees are recovered from participants.
Revised Onboarding Fee Structure and Installment Recovery
Under the updated guidelines, establishing an NPS account through a Point of Presence will incur a one-time onboarding charge of Rs 200 for every Permanent Retirement Account Number. However, subscribers are not required to pay the full amount upfront during account creation. Central Recordkeeping Agencies will collect this fee in four quarterly installments of Rs 50 each by canceling units directly from the subscriber's NPS holdings.
The funds gathered from the subscriber will subsequently be transferred to the respective Point of Presence during the month following the quarter in which the onboarding process is completed. This structured recovery aims to ease the initial financial friction for new entrants joining the pension system through assisted channels.
Understanding the Role of Points of Presence
A Point of Presence functions as an authorized intermediary delivering various pension-related services to participants. Depending on their specific regulatory authorization, commercial banks, financial institutions, and other registered entities can operate as PoPs. These organizations assist customers with establishing accounts, depositing contributions, managing service requests, and handling administrative account tasks.
Consequently, the updated framework carries distinct importance for investors who rely on traditional bank branches or other assisted channels to manage their retirement portfolios. Subscribers must evaluate their chosen onboarding pathway to understand how these intermediary costs might apply to their specific holdings.
Annual Assets Under Management Charge Adjustments
The regulatory authority has also established an annual PoP fee set at 0.20 percent of the assets under management for eligible schemes. Unlike standard fees that appear as standalone transactions in a user statement, this charge will be factored in through the scheme's net asset value. The calculated amount will be computed and remitted to the respective intermediary on a quarterly basis.
Applicable goods and services tax and other statutory levies will be charged separately where required. Because the annual fee is adjusted via the NAV, participants may not observe a direct cash deduction from their liquid balance, though the charge will subtly influence the overall valuation of their accumulated units.
Digital Account Opening Provisions
The regulatory body has addressed accounts established entirely through digital, non-face-to-face methods separately. For such onboarding journeys, a one-time fee of Rs 100 may apply, with actual applicability contingent upon conditions specified during the intermediary's registration and subsequent regulatory orders.
New investors should verify whether their account creation utilizes an assisted intermediary or a direct digital route before finishing the onboarding steps. Existing participants are likewise encouraged to check the original channel through which their account was established to determine if intermediary charges affect them.
PFRDA has instructed all authorized intermediaries to prominently display their revised fee schedules on official websites. This transparency allows participants to compare applicable costs and evaluate financial implications prior to opening an account or utilizing assisted services from October 1, 2026.
