If you have a National Pension System (NPS) account opened through a bank or another Point of Presence (PoP), the charges you pay changed on October 1, 2026. The Pension Fund Regulatory and Development Authority (PFRDA) has introduced a new, more uniform fee structure. Most of the charges are not paid in cash; they are taken from your NPS units. Here is what changed and how it affects your balance.
New NPS charges from October 1, 2026
- Account opening (onboarding): a one-time ₹200 per PRAN, recovered as ₹50 a quarter for four quarters by cancelling units from your holdings
- Fully digital opening: a lower one-time charge of ₹100 may apply, subject to PFRDA’s conditions
- Annual PoP charge: 0.20% of your NPS balance a year, adjusted through the scheme’s NAV and paid to the PoP every quarter
- Dormant accounts: according to one report on the circular, no annual charge applies while an account is dormant (no contribution for four quarters in a row)
- Taxes: GST is charged separately where it applies
Based on PFRDA’s circular dated August 28, 2026, as reported by GoodReturns, Outlook Money, Cafemutual and Indian Pay Calculator. Read the circular on pfrda.org.in for the exact terms.
What is different from before
Earlier, PoP charges depended on the type of scheme your money was in, for example a common scheme or a scheme under the Multiple Scheme Framework. The new structure removes that difference, so the same charges apply across eligible NPS and NPS Lite schemes. The central recordkeeping agencies are deducting the new charges from the third quarter of the 2026-27 financial year.
How much will it cost you?
An example: on an NPS balance of ₹5 lakh, a 0.20% annual charge works out to about ₹1,000 a year, before GST. You will not see this as a separate deduction, because it is adjusted through the NAV, but it slightly lowers the value of your holdings. Over many years, even small charges add up, so it is worth knowing about.
Draft changes still in discussion
Separately, PFRDA issued a draft in September 2026 proposing changes to its Point of Presence rules, including more service points in smaller towns and easier online account opening. Public comments were due by October 2, 2026. These are proposals; the final rules may differ.
For other retirement savings changes this month, read our guide to the new EPFO rules.
What you can do
- Check your NPS statement on the CRA website or app after the quarter ends to see unit cancellations.
- If you are opening a new account, compare the online route with a bank branch.
- Keep contributing regularly; charges are small compared with long-term returns, but read the terms.
Quick answers
Do I have to pay ₹200 in cash? No. It is recovered from your NPS units in four quarterly instalments of ₹50.
Does this apply to government employees? The new charges apply to PoP-linked NPS and NPS Lite accounts. Check with your nodal office or PoP for your account type.
Questions to think about
- Should pension charges be shown to subscribers as a clear rupee amount every year?
- Will lower charges for online account opening bring more young people into NPS?
- Is 0.20% a fair fee for the service PoPs provide?
Sources: reports on PFRDA’s circular of August 28, 2026 by GoodReturns, Outlook Money, Cafemutual and Indian Pay Calculator, and PFRDA’s draft PoP regulations of September 2, 2026.
