The Pension Fund Regulatory and Development Authority (PFRDA) has recently raised the service charges for Points of Presence (POPs) under the National Pension System (NPS), Mint reported. These charges for NPS-related services which are offered at POP outlets have been increased with effect from February 1, 2022.
In its circular, PFRDA stated: “With a view to incentivise the POPs to actively promote and distribute NPS and provide better customer service, applicable charges for POPs for the various services provided by them is being revised,” reported Mint.
These are the revised charges for points of presence under NPS
Initial subscriber registration: ₹200 to ₹400 (negotiable with slab only; collected upfront)
Initial and subsequent transactions: Up to 0.50 percent of contribution (minimum ₹30 maximum ₹25,000 (Negotiable with slab only; non-financial ₹30) (collected upfront)
Persistency: For more than six months in a financial year and minimum contribution of ₹1,000 to ₹2,999: ₹50 per annum (through cancellation of units only)
For a minimum contribution up to ₹2,999: ₹50 per annum
For a minimum contribution of ₹3,000 to ₹6,000: ₹75 per annum
For a minimum contribution of above ₹6000: ₹100 per annum
Processing of exit and withdrawal services: The charge of 0.125 percent of corpus with a minimum of ₹125 and a maximum of ₹500 will be collected upfront.
Starting February 15, charges on all subsequent contributions through eNPS have been raised to 0.20 per cent of the contribution, subject to a minimum of ₹15 and a maximum charge of ₹10,000. This charge, however, will not be applicable for subscribers registered on eNPS.
National Pension System is a market-linked, defined-contribution product that requires you to invest in the funds of your choice on a regular basis.