PFRDA announces revised charges for NPS, NPS Lite, NPS Vatsalya, UPS, Atal Pension Yojana subscribers

The Pension Fund Regulatory and Development Authority (PFRDA) has announced a revision in charges for services provided by Central Recordkeeping Agencies (CRAs) to subscribers of various pension schemes, including the National Pension System (NPS), NPS Lite, NPS Vatsalya, Unified Pension Scheme (UPS), and Atal Pension Yojana (APY). These updated charges will come into effect on October 1, 2025, and apply to both online and offline account maintenance. The revision differentiates between government and private sector subscribers, reflecting a tailored approach to account maintenance costs.

NPS & UPS

For government employees subscribing to NPS and UPS, the charges have been standardised and are minimal. The PRAN (Permanent Retirement Account Number) opening fee is set at Rs 18 for an e-PRAN kit and Rs 40 for a physical PRAN card. The annual maintenance charge (AMC) for each account will be ₹100, while transaction charges are zero.

It is noteworthy that accounts with a nil balance will not attract any annual maintenance charges, ensuring cost efficiency for subscribers who have not yet accumulated funds. PFRDA has also clarified that the e-PRAN kit will be the default option for new account openings. Importantly, the charges mentioned for UPS subscribers under the government sector are applicable only during the accumulation phase. Any fees applicable during the payout or decumulation phase will be determined separately by PFRDA at a later stage.

The charges are as follows:

Charge Head                Amount (₹)
PRAN Opening    e-PRAN Kit: 18
Physical PRAN Card:         40
Annual Maintenance Charge   100
Transaction Charge        0

Nil-balance accounts will not incur any annual maintenance charges.

The e-PRAN Kit will be the default option when opening a new account.

Note: For UPS subscribers, these charges apply only during the accumulation phase. PFRDA will specify charges for the payout/decumulation phase later.

APY & NPS-Lite accounts

Subscribers of Atal Pension Yojana (APY) and NPS-Lite will also benefit from a simplified fee structure. The PRAN opening charge and annual maintenance charge for these accounts are both Rs 15, while transaction charges remain zero. This low-cost approach is aimed at promoting financial inclusion and encouraging participation in pension schemes among lower-income groups.

For APY and NPS-Lite accounts, the charges are uniform and minimal:

Charge Head                    Amount (₹)
PRAN Opening                    15
Annual Maintenance Charge    15
Transaction Charge             0

NPS and NPS-Vatsalya

For private sector subscribers, the PRAN opening fees are consistent with government sector rates: Rs 18 for an e-PRAN kit and Rs 40 for a physical PRAN card. There are no transaction charges. However, the annual maintenance charge is tiered based on the subscriber’s Tier I account balance, as follows:

Nil for balances up to Rs 1 lakh

Rs 100 for balances between Rs 1 lakh and Rs 2 lakh

Rs 150 for balances between Rs 2,00,001 and Rs 10 lakh

Rs 300 for balances between Rs 10,00,001 and Rs 25 lakh

Rs 400 for balances between Rs 25,00,001 and Rs 50 lakh

Rs 500 for balances above Rs 50 lakh

PFRDA has emphasised that these rates are upper caps, meaning CRAs cannot charge more than the specified amounts. However, CRAs are permitted to offer reduced or negotiated fees, provided they do not fall below the upper cap of the immediately preceding slab.

Additional guidelines

The regulatory authority has clarified that any new services introduced by CRAs may be charged at actual cost without any additional markup, subject to prior approval. Furthermore, CRAs are required to display the full fee structure prominently on their official websites and mobile applications to ensure transparency for subscribers.

With these revised charges, PFRDA aims to make pension schemes more affordable, transparent, and accessible, while providing flexibility for both government and private sector subscribers. The new fee structure is expected to streamline account management and encourage long-term participation in pension schemes.