PFRDA Master Circular on Service Charges for NPS PoPs (Updated)

Pension Fund Regulatory and Development Authority (PFRDA) has issued a master circular consolidating guidelines on service charges for Points of Presence (PoPs) under the National Pension System (NPS) and NPS-Lite. This circular, effective from January 31, 2025, outlines permissible charges for services such as subscriber registration, contributions, withdrawals, and persistency incentives. PoPs can negotiate charges within the maximum limits set by PFRDA, and fees are deducted through upfront collection or unit cancellation. Specific charges apply to different transaction types, including e-NPS contributions and D-Remit commissions. Additionally, PoPs must disclose service charges on their websites and during transactions. The circular also rescinds and archives previous related circulars, ensuring continuity of past actions. Non-compliance may lead to regulatory action under the PFRDA Act, 2013.

Pension Fund Regulatory & Development Authority

Master Circular No. PFRDA/Master Circular/2024/05/PoP- 03 Dated: 25th April 2024

(Updated as on 31^st January 2025)

To
All Point of Presence (PoPs) and Stakeholders in the NPS/NPS-Lite

Madam/Sir,

Master Circular – Service Charges that can be collected by POPs under NPS (All Citizen  and Corporate)/ NPS Lite

1. This circular is issued in exercise of powers conferred under sub-section (1) of Section 14 read with clause (e) of sub-section (2) of Section 14 of the Pension Fund Regulatory and Development Authority Act, 2013 and Regulation 16 of the PFRDA (Point of Presence) Regulations, 2018, as amended.

2. This master circular consolidates the existing instructions on the subject of “Service Charges for POPs under NPS (All Citizen and Corporate/NPS-Lite)”. The list of underlying circulars on the subject is furnished in the Part – V.

Yours faithfully,

(Ashish Kumar Bharati)
General Manager

Service Charges that can be collected by POPs under NPS (All Citizen and  Corporate) / NPS-Lite

PART I- INTRODUCTION

1. With a view to incentivize the Point of Presence (“PoPs”) to promote and distribute NPS and provide better customer service, applicable charges for PoPs for the various services provided by them have been revised from time to time vide various circulars issued by the Authority. The effective date of applicability mentioned in respective circulars would remain unchanged.

2. The instructions contained in the aforesaid Master Circular have been suitably updated by incorporating relevant circulars, issued as on date.

3. The charges that can be collected for services rendered in respect of the NPS-Vatsalya account at any time shall be the same as the charges that be collected under NPS- All Citizen Model as stipulated by the Authority from time to tim (Please refer Circular PFRD/2024/16/PDES/01 dated 18^th Sep. 2024 on subject NPS Vatsalya scheme details].

PART II – GENERAL GUIDELINES

4. It may be noted that the compliance obligation of the PoPs shall not be confined merely
to the Master Circular but, also to the provisions of the PFRDA Act, 2013 the Rules and Regulations notified thereunder and other applicable laws, besides instructions given by the Authority.

5. This Master Circular shall take effect from the date of its issuance but shall be without prejudice to their (earlier issued circulars) operation and effect, for the period when they were in force, until them being subsumed under this Master Circular. Based on the above Part V containing the list of circulars consolidated in the Master Circular – is placed at Annexure I, such that they are subsumed in the Master Circular and shall for all purpose and intent, remain operative, with no break of continuity. The list of circulars rescinded from time to time is archived and is placed at Annexure II.

6. Notwithstanding such rescission of any circular, upon their merger in the Master Circular, or otherwise, anything done or any action taken or purported to have been done or taken, or to be taken hereafter, under the circulars now rescinded (for the period of their operation) shall be construed to have been validly taken as if the said circulars are in full force and effect and shall remain unaffected by their rescission, in any manner.

7. The previous operation of the rescinded circulars or anything duly done or suffered thereunder, any right, privilege, obligation or liability acquired, accrued or incurred, any penalty, any order passed, any violation committed, any investigation, legal proceedings pending in terms of the circular (now rescinded), shall be treated as if the circulars are in full force and effect, and shall remain unaffected by their rescission, in any manner.

PART III

SERVICE CHARGES FOR THE POINT OF PRESENCE

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

PART IV -SPECIFIC GUIDELINES

9. The service charge structure outlined in PART III of this master circular shall be effective from 31.01.2025. The old charge structure applicable prior to 31.01.2025, may be referred from the circulars mentioned in Annexure I of Part V of this Master Circular.

10. The PoPs will continue to have the option to negotiate the charges with the subscribers, subject however to the maximum charge structure permitted by the Authority.

11. Persistency charge per financial year will be applicable on accounts under NPS- All Citizen Model where a subscriber is associated with a particular PoP continuously for more than six months in a financial year. The applicable persistency charges at different level of contributions in Tier-I account during the financial year shall be as per table at point – 8 This charge will be payable annually to the associated PoPs by deduction of the units in the system of Central Record Keeping Agency after closure of the financial year.

12. The POPs shall make timely and sufficient disclosure to subscribers in respect of the charges being collected by them.

13. Charge structure under NPS-Lite/ Swavalamban is as below:

14. The Aggregators are not permitted to collect any charge upfront from the NPS-Lite/Swavalamban subscriber.

15. In case of any violation of the master circular being observed,an appropriate action, as may be warranted shall be initiated by the Authority, including under the provisions of the PFRDA Act, 2013 and PFRDA (Point of Presence) Regulations, 2018 as amended.

16. All Points of Presence (POPs) are required to provide their service charge structure for ‘e-NPS (for subsequent contributions)‘ and ‘trail commission for D-Remit Contributions‘ to the Central Record Keeping Agencies to deduct applicable charges through upfront deduction from subscriber`s contribution and unit deduction from subscribers corpus on periodical basis respectively.

17. All Points of Presence (PoPs) are mandated to publicly display their updated charge structure on their respective websites. This information must also be clearly presented to subscribers during the transaction process through pop-up notification.

PART V

List of circulars consolidated in the Master Circular – Annexure I

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