FAQs on NPS Charges

  • What are the charges under NPS?
  • Does subscriber need to pay POP charges over and above the contribution amount?
  • What is meant by Non – Financial Transaction?
  • Is the 'Transaction Processing Charge' under CRA head applicable for both - Financial and Non - Financial Transaction requests?
  • How is the Non – Financial Transaction Charge recovered by POP?

Below are the details of charges under NPS:

Intermediary Charge Head Charge# Mode of Deduction
POP Subscriber Registration Charge 125 To be collected up front
Contribution Processing Charge* 0.25%
Non – Financial Transaction Processing Charge 20
CRA Account Opening Charge 50 Through cancellation of units
Transaction Processing Charge 4
Annual Maintenance Charge 190
PFM Fund Management Charge 0.01% Through NAV deduction
Custodian Security Deposit Charge 0.0075% p.a for Electronic segment & 0.05% p.a. for Physical segment
*Subject to minimum 20 and maximum 2500 per PRAN per Transaction #exclusive of Service Tax

In general, the POP charges are deducted from the contribution amount deposited by the subscriber. To ensure that a minimum of 2000 is credited into the subscriber’s NPS account after deducting the contribution processing charge and applicable taxes, an SI of a minimum of 2025 needs to be made. Below illustration depicts the calculation.

Contribution Amount () Contribution Processing Charge* () Service Tax @14% Total Amount#
2000 20 2.8 2022.80
4000 20 2.8 4022.80
8000 20 2.8 8022.80
20000 50 7 20057.00

*0.25% of contribution amount subject to minimum of 20 and maximum of 25000.

#To be debited from linked SA account by way of SI

Apart from contribution processing, subscriber is allowed to do below transactions as well which are known as Non - Financial Transaction.

  • Switch from one sector to another
  • Change of Scheme Preference, Fund Manager and Asset Allocation Pattern
  • Modification of Subscriber details like Change in Name, Nominee, and Address etc
  • Request for Re-issue of I-Pin / T-Pin
  • Shifting of Subscriber from one POP / POP – SP to other POP / POP – SP
  • Re-printing of PRAN
  • Activation of Tier – 2 NPS Account
  • Switching the amount from Tier – 2 NPS Account to Tier – 1 NPS Account
  • Modification of Photograph / Signature of the subscriber
  • Request of unfreezing of NPS Accounts

Yes. 4 plus Service Tax will be applicable for any kind of transaction request raised by the subscriber.

Subscriber needs to pay 20 + Service Tax in Cash or by cheque at the time of submitting request for process any Non – Financial transaction.

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