New Guidelines on Service Charges for NPS Points of Presence

Introduction

The Pension Fund Regulatory and Development Authority (PFRDA) has issued a master circular consolidating the guidelines on service charges applicable to Points of Presence (PoPs) under the National Pension System (NPS) and NPS-Lite. Effective from January 31, 2025, this circular outlines permissible service charges for various transactions, including subscriber registration, contributions, withdrawals, and persistency incentives. PoPs are permitted to negotiate fees within limits specified by PFRDA, with charges collected either through upfront payment or unit cancellation. Additionally, PoPs must disclose service charges on their websites and during transactions. This circular supersedes and archives previous related circulars, ensuring continuity in operations. Non-compliance may result in regulatory actions under the PFRDA Act, 2013.

Master Circular Overview

Master Circular No. PFRDA/Master Circular/2024/05/PoP-03
Dated: April 25, 2024
Updated as of: January 31, 2025

Contents

• PART I: Introduction
• PART II: General Guidelines
• PART III: Service Charges for Points of Presence
• PART IV: Specific Guidelines
• PART V: List of Circulars

PART I - INTRODUCTION

1. To incentivize Points of Presence (PoPs) in promoting NPS and enhancing customer service, the applicable charges for PoPs have been revised through multiple circulars. The effective dates in previous circulars remain unchanged.
2. The instructions in this Master Circular have been updated to incorporate relevant circulars issued to date.
3. Charges for services related to the NPS-Vatsalya account shall align with those applicable under the NPS-All Citizen model, as detailed in Circular PFRD/2024/16/PDES/01 dated September 18, 2024.

PART II - GENERAL GUIDELINES

4. PoPs must adhere not only to this Master Circular but also to the provisions of the PFRDA Act, 2013, related Rules and Regulations, and other applicable laws, along with instructions from the Authority.
5. This Master Circular is effective from the issuance date but does not negate the operation of earlier circulars until they are fully encompassed within this document. All previously effective circulars remain operational in nature despite being subsumed under this Master Circular.
6. Actions taken under rescinded circulars during their valid periods are acknowledged as valid, as if the rescinded circulars were still in effect.
7. Any rights, privileges, obligations, or liabilities arising from former circulars remain in force, despite their rescission.

PART III - SERVICE CHARGES FOR THE POINT OF PRESENCE

8. The charge structure for PoPs under NPS (All Citizen and Corporate) is as follows:

Intermediary Service	Charges	Method of Deduction
Initial Subscriber Registration	Up to a maximum of ₹400	To be collected upfront
Initial Contribution	Up to 0.50% of the contribution, subject to a maximum of ₹25,000	-
All Subsequent Contributions	-	-
All Non-Financial Transactions	Up to a maximum of ₹30	-
Persistency*	₹50 p.a. for annual contributions between ₹1,000 and ₹2,999; ₹75 p.a. for ₹3,000 to ₹6,000; ₹100 p.a. for contributions above ₹6,000	Through unit cancellation
e-NPS (for subsequent contributions)	Up to 0.20% of the contribution, subject to a maximum of ₹10,000	To be collected upfront
Trail commission for D-Remit Contributions	0.20% of the contribution, subject to a maximum of ₹10,000	Through unit deduction periodically
Processing of Exit/Withdrawal	Up to 0.125% of corpus, subject to a maximum of ₹500	To be collected upfront

*1. Persistency charges apply to PoPs associated with subscribers for over six months in a financial year.
2. Minimum contribution per transaction is ₹500; minimum annual contribution is ₹1,000.
3. Applicable GST or other taxes will be additional.

PART IV - SPECIFIC GUIDELINES

9. The service charge structure mentioned in PART III will be effective from January 31, 2025. For the previous structure, refer to the circulars listed in Annexure I of Part V.
10. PoPs may negotiate charges with subscribers, adhering to the maximum charge structure allowed by the Authority.
11. The persistency charge is applicable for NPS - All Citizen Model accounts where subscribers are associated with a PoP for more than six months. Charges will be deducted from the corresponding accounts annually, based on the levels of contributions specified.
12. PoPs are required to provide timely disclosures regarding the charges they impose on subscribers.
13. Under NPS-Lite/Swavalamban, the charge structure is as follows:

• Subsequent transaction charge: 0.25% of the total contribution deposited by the subscriber annually, with a minimum charge of ₹20, deducted at the financial year's end.
• Other transactions not involving subscriber contributions will incur a charge of ₹10 each.

14. Aggregators are prohibited from collecting upfront charges from NPS-Lite/Swavalamban subscribers.
15. Any violations of this master circular will result in appropriate action by the Authority, which may include invoking provisions of the PFRDA Act, 2013, and PFRDA (Point of Presence) Regulations, 2018, as amended.
16. All PoPs must present their service charge structures for ‘e-NPS (for subsequent contributions)’ and ‘trail commission for D-Remit Contributions’ to Central Record Keeping Agencies for proper charge deductions.
17. Each PoP must publicly showcase their updated charge structure on their websites and display this information during transaction processes through notifications.

PART V - Circulars Consolidated

List of Circulars Consolidated in the Master Circular – Annexure I

S.No	Circular No.	Date of Issuance	Subject
1	PFRDA/2022/03/REG-POP/01	31/01/2022	Revision of Service Charges for PoPs under NPS (All Citizen and Corporate)
2	PFRDA/2023/04/REG-POP/01	20/01/2023	Clarification on Non-Financial Charges for PoPs under NPS (All Citizen and Corporate)
3	PFRDA/2022/22/SUP-CRA/7	22/08/2022	Trail Commission to PoPs on Voluntary Contributions via D-Remit
4	PFRDA/2017/5/SWM/1	20/02/2017	Charges and Incentive Structure under NPS Lite (Effective from 01.04.2017)

List of Circulars Rescinded and Archived in the Master Circular – Annexure II

S.No	Circular No.	Date of Issuance	Subject
1	PFRDA/2021/49/REG-POP/2	13/12/2021	Negotiation Conditions Related to Fee Structure for PoPs under NPS
2	PFRDA/2020/40/REG-POP/1	14/09/2020	Revision in Negotiation Conditions Related to Fee Structure for PoPs under NPS
3	PFRDA/2017/34/P&D/1	31/10/2017	Clarification on Revision of Service Charges to PoPs under NPS (All Citizen and Corporate Model)
4	PFRDA/2017/34/P&D/1	27/10/2017	Revision of Service Charges to PoPs under NPS (All Citizen and Corporate)
5	PFRDA/2016/17/CORP/3	26/07/2016	Introduction of Service Charges for e-NPS Transactions
6	PFRDA/2016/3/CRA/TB/1	28/01/2016	Revision of KYC Verification Fees for Online Subscriber Registration
7	PFRDA/2015/13/POP/02	20/04/2015	Enhancement of Initial Subscriber Registration Charges for PoPs under NPS
8	9/16/2008	16/01/2012	Charge Structure for PoPs Covering Private Sector Subscribers under NPS