NPS charges have been Increased since February 2022.

Their aim for launching these NPS new rules is to deliver better customer service and encourage the NPS.

NPS Charges Hiked Having an NPS account will cost you more

Changes in the National Pension System

NPS or the National Pension System is regulated by PFRDA under the act of 2013. There have been drastic changes in the NPS. PFRDA (Pension Fund Regulatory Development Authority) has increased the service charges of the presence of points and released New Pension Scheme. This increment is applicable to all corporations and citizens. 

As per the reports of PFRDA, these charges came to effect in February 2022. The new increment of the charges came on 31st January 2022 on the website of PFRDA. In it, they say that both the processing for withdrawal and exit charges shall be freshly introduced. They also added that the service charges on eNPS will also increase. They said that these charges are being increased to deliver better services to their customers and encourage the NPSs. 

Changes in the NPS Charges

The NPS new rules applicable since February 2022 are as follows:

  • There shall be an increase in the initial customer registration from 200 INR to 400 INR. 
  • 0.5% of the contribution on initial and later transactions, i.e. a minimum of 30 INR and a maximum of 25,000 INR.

Persistency: 

  1. For a yearly contribution of 1000 INR to 2999 INR, 50 INR per annum shall be collected. This collection will be through the unit’s cancellation.
  2. For a yearly contribution of 3000 INR to 6000 INR, 75 INR per annum shall be collected. This collection will be through the unit’s cancellation
  3. For a yearly contribution of above 6000 INR, 100 INR per annum shall be collected. This collection will be through the unit’s cancellation.
  4. Through eNPS or the subsequent transactions, 0.2% of the contribution will be charged. The minimum of which is 15INR and 500INR is the maximum. This charge shall have to be collected upfront. However, this is applicable only NPSs citizens and accounts of Tier II. 
  5. For the processing of exit and withdrawal, 0.125% of the corpus will be charged. The minimum amount of charge for this is 125INR and the maximum amount is 500 INR i.e. collected upfront. 

To know more about the National Pension Scheme, visit this 

Conclusion

There has been an increase in the services of NPS. The PFRDA (Pension Fund Regulatory Development Authority) is responsible for this regulation of the NPS. There has been an increase in the processing charges of exits and withdrawals and also in the service charges of eNPS.

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