The Pension Fund Regulatory and Development Authority (PFRDA) has announced a change in the implementation date for the revised Point of Presence (PoP) fee structure under the National Pension System (NPS). Originally set to take effect on October 1, 2026, the new fee rules will now be implemented from December 1, 2026. This extension allows the Central Recordkeeping Agencies (CRAs) additional time to prepare for the changes. NPS and NPS Lite subscribers should understand the updated charges and how they may affect their accounts.
- The implementation date for revised PoP charges has been extended to December 1, 2026.
- PoPs will receive a one-time onboarding fee of ₹200 per Permanent Retirement Account Number (PRAN), recovered quarterly in ₹50 installments.
- An annual charge of 0.20% of assets under management (AUM) will apply to active accounts, payable quarterly.
- Dormant accounts are exempt from the annual AUM-linked PoP charge.
- Subscribers should review the detailed circular issued by PFRDA for full details.
What are the new PoP fee rules under NPS?
The revised fee structure for PoPs under the NPS was first notified on August 28, 2026. It includes a one-time onboarding charge of ₹200 per PRAN for new subscribers registering through applicable channels. Instead of deducting this amount at once, the charge will be recovered in quarterly installments of ₹50 by canceling units from the subscriber's account.
Additionally, an annual fee of 0.20% of the assets under management (AUM) will be charged to active accounts. This fee will be adjusted through the net asset value (NAV) and paid to the PoP quarterly. However, this annual charge does not apply to dormant accounts.
How is a dormant account defined under the new rules?
An account is considered dormant if there has been no contribution for four consecutive quarters following the last contribution. This classification is based on a prescribed identification process carried out by the CRAs. Dormant accounts are excluded from the annual AUM-linked PoP charge, providing relief to inactive subscribers.
Why was the implementation date extended?
The PFRDA issued a circular on October 26, 2026, stating that the implementation date for the revised PoP charges would be postponed from October 1 to December 1, 2026. This extension gives the CRAs additional time to implement the new charge structure effectively. The circular clarified that all other provisions of the earlier notification remain unchanged.
What should NPS subscribers do now?
Subscribers to NPS and NPS Lite should review the revised fee structure carefully to understand how the new charges will impact their accounts. It is important to note that the extension only delays the implementation date; the revised framework is still in effect. Subscribers should check their account status, especially to see if their account is classified as dormant, and plan accordingly.
Frequently Asked Questions
Q: When will the new PoP fee rules come into effect?
A: The revised PoP fee structure will be implemented starting December 1, 2026.
Q: How will the onboarding fee be charged?
A: The onboarding fee of ₹200 per PRAN will be recovered in quarterly installments of ₹50 by canceling units from the subscriber's account.
Q: Are dormant accounts charged the annual AUM fee?
A: No, dormant accounts are exempt from the annual 0.20% AUM-linked PoP charge.
Q: What defines a dormant account?
A: An account is dormant if there has been no contribution for four consecutive quarters after the last contribution.
Subscribers should refer to the official PFRDA circular issued on August 28, 2026, and the update from October 26, 2026, for detailed information on the revised PoP fee structure.
