If you hold an NPS account opened through a bank or another Point of Presence (PoP), the charges you pay to that PoP changed on 1 October 2026. The headline numbers look small: a one-time ₹200 per account and 0.20% a year on your corpus. Over 25 years of saving, that 0.20% is the one worth understanding, because it is charged on your whole balance, every year, whether you notice it or not.
Here is what changed, what it costs in rupees, and who pays nothing at all.
What changed in NPS charges from 1 October 2026
The Pension Fund Regulatory and Development Authority (PFRDA) issued a circular dated 28 August 2026 revising PoP charges for all NPS and NPS Lite schemes, effective 1 October 2026, according to Outlook Money. It replaces the structure that had applied since earlier this year.
The main points, as reported:
One-time onboarding charge of ₹200 per PRAN (your Permanent Retirement Account Number). Earlier it was described as ₹200 per new account. The amount is the same; it is now tied to the PRAN.
How it is collected: not in one go. The record-keeping agency cancels units worth ₹50 a quarter and pays the PoP, so you see it as a small dip in units over four quarters.
₹100 instead of ₹200 may apply if you were onboarded fully digitally, without meeting the PoP face to face.
0.20% a year of your assets under management (AUM), adjusted through the NAV and paid to the PoP quarterly. GST is charged on top.
The circular also ends the separate treatment of Multiple Scheme Framework (MSF) schemes for PoP charges, so the same structure now applies across schemes.
The minimum contributions are unchanged: ₹250 at opening and ₹10 for later contributions.
What 0.20% a year actually costs you
The onboarding charge is a one-off. The AUM charge is the one that grows with you. A few worked examples, adding 18% GST to the 0.20%, so an effective 0.236% a year:
Corpus of ₹1,00,000: about ₹236 a year.
Corpus of ₹5,00,000: about ₹1,180 a year.
Corpus of ₹20,00,000: about ₹4,720 a year.
You will not get a bill for this. Because it is adjusted through the NAV, it shows up as a slightly lower value of your units. That is why many subscribers do not realise they are paying it.
Is 0.20% a lot? On its own, it is modest compared with many investment products. But it sits on top of the fund manager's own fee and other NPS charges, and over a long horizon every 0.1% compounds. A rough illustration: on a corpus that averages ₹10 lakh over 20 years, 0.236% a year is about ₹2,360 a year, or roughly ₹47,000 in total before counting the growth that money would have earned. Not a reason to panic, but a reason to know which side of the next section you are on.
Who does not pay PoP charges at all
Two groups are exempt, according to the PFRDA circulars as reported by TaxGuru and Outlook Money.
1. Subscribers who opened NPS directly through e-NPS
If you opened your account directly on e-NPS (the online platform run by the record-keeping agencies) and you make your contributions through e-NPS or D-Remit, you pay no PoP charges. There is a catch that trips people up: if you opened your account through a PoP such as your bank, you stay liable for PoP charges even if you later contribute through e-NPS or D-Remit.
2. Dormant accounts
If no contribution has gone into your account for four consecutive quarters, after at least one earlier contribution, it is treated as dormant and the AUM charge does not apply. That said, letting an account go dormant to save 0.20% is the wrong way round. The point of NPS is regular contributions; the charge is the smaller issue.
How to check what you are paying
A short checklist you can do this weekend:
Find out how your account was opened. If you opened it at a bank branch or through a broker or app that acted as a PoP, the PoP charges apply. Your CRA account login shows the PoP linked to your PRAN.
Look at your transaction statement. Unit cancellations for charges are listed. If you opened an account in the last year, you should see the quarterly onboarding deduction.
Check your PoP's charge page. PoPs are required to display their updated charges on their websites and show pop-up notices during transactions. The Aditya Birla Sun Life Pension Fund charges page is one example of how these are published.
If you are opening a new NPS account, compare a direct e-NPS opening with a PoP opening. If you are comfortable doing it online, the direct route avoids PoP charges entirely, as long as you keep contributing through e-NPS or D-Remit.
Should this change how you use NPS?
For most salaried savers, no. NPS's tax treatment and long-term discipline matter far more than a 0.20% PoP charge. If your employer contributes through a corporate NPS arrangement, your options may also be set by that arrangement.
Where it does matter:
If you are about to open NPS, the opening route makes a lasting difference.
If your corpus is already large, it is worth knowing what you pay each year, the same way you would check a mutual fund's expense ratio.
If you have more than one PRAN by mistake, each one can attract its own charges. Ask your CRA how to close or merge the duplicate.
This is general information, not financial advice. Charges and rules can be revised by PFRDA, so check the latest circular and your PoP's published charges before acting.
