NPS Account Holders: Change in fee structure related to NPS account, minimum and maximum limits fixed

Pension regulator PFRDA has changed the fee structure of centers (POPs) that facilitate National Pension Scheme (NPS) account opening. Minimum and maximum limits of fees have been fixed for various facilities provided by these centres. Earlier these centers had the freedom to bargain with NPS members.

PFRDA has issued a circular regarding changes in fees. Actually, the responsibility of making it easier for the customer to open and operate NPS account is given to Point of Presence (POP). The regulator itself selects them. POP has an extensive branch network. POP is an important link between the customer and NPS. These centers charge some fee for providing services to the customer.

Who is included in POP

Banks, NBFCs and other financial institutions are selected as POPs by pension regulator PFRDA. They enroll people in NPS and provide many other facilities to the members. POP also gets commission on opening a new account.

That’s why the fee was changed

There has been a change in the fees charged by NPS service provider POP centres. Earlier there was no limit on the fees charged by POP. For this, customers used to bargain with him. Now the limit has been set. However, in some cases customers will be able to negotiate like before.

how much fees will have to be paid

1. If a person does initial registration in NPS, he will have to pay Rs 200 to Rs 400 to POP.

2. Similarly, up to 0.50 percent fee will have to be paid on the initial contribution. It will be between minimum Rs 30 to maximum Rs 25 thousand.

3. A fee of Rs 30 has been fixed for all non-financial transactions.

What is NPS?

National Pension Scheme is a social security initiative of the Central Government. It was started in 2004 for government employees but in 2009 it was opened to all categories. National Pension Scheme is a voluntary and long-term investment scheme for retirement. After completing the age of 60 years, the member gets one part of the amount and starts getting pension from the other part. Almost all banks offer NPS facility.