A new structure for ‘Point of Presence’ (PoP) charges will come into effect for National Pension System (NPS) subscribers starting October 1, 2026. The Pension Fund Regulatory and Development Authority (PFRDA) is bringing all NPS and NPS Lite schemes under a unified standard framework. In a circular dated August 28, 2026, the PFRDA fixed a one-time onboarding charge of ₹200 for every ‘Permanent Retirement Account Number’ (PRAN) opened through a PoP. Subscribers will also be required to pay an annual charge of 0.20% of their ‘Assets Under Management’ (AUM), except in cases where the account is classified as ‘dormant’. This new framework will replace the PFRDA’s earlier circular from March 2026, effective October 1.

The ₹200 NPS onboarding fee will be recovered in quarterly installments.
The ₹200 onboarding charge will not be deducted from the subscriber's account in a single lump sum. Instead, Central Recordkeeping Agencies will recover this amount by cancelling units worth ₹50 every quarter. The recovered amount will be remitted to the PoP in the month following the quarter in which the subscriber completed the onboarding process.

The PFRDA has also set a lower onboarding charge of ₹100 for subscribers who complete the entire process digitally and without in-person interaction (non-face-to-face). However, not everyone who opens an NPS account online will automatically qualify for this ₹100 charge. According to the circular, the applicability of this charge will depend on conditions determined by the PFRDA at the time of PoP registration and subsequently. The new rules also include an annual PoP charge of 0.20% of the AUM. This will be adjusted against the Net Asset Value (NAV) and paid to the PoP on a quarterly basis. For instance, an NPS account with an AUM of ₹5 lakh would incur an annual charge of ₹1,000 based on the fixed rate of 0.20% (excluding GST and other applicable taxes). This charge is reflected through the NAV rather than being paid as a separate annual fee. The PFRDA has set a minimum contribution of ₹250 at the time of opening an NPS account. Subsequent contributions can be as low as ₹10.

**Using e-NPS later does not eliminate PoP charges**
The new rules highlight a crucial distinction between opening an NPS account via e-NPS and using e-NPS or D-Remit for subsequent contributions. A subscriber who joins through e-NPS and subsequently makes contributions via e-NPS or D-Remit will not be liable for PoP charges.

The situation differs for someone who initially opened their NPS account through a PoP. Even if such a subscriber later uses e-NPS or D-Remit to make contributions, the applicable PoP charges will continue to apply. Therefore, making contributions through online channels does not automatically waive PoP charges; the initial onboarding method remains the deciding factor.

The PFRDA has also exempted inactive accounts from PoP charges. An account is deemed inactive if, following a contribution in a given quarter, no further contributions are made for four consecutive quarters (this status is assessed at the end of each quarter). Accounts linked to the same PAN across different CRAs are considered for this determination. This means that subscribers whose NPS accounts are inactive—and who fall under the regulator's definition of 'inactivity'—will not be charged the annual PoP fee for the period of inactivity.

**What is the major change?** The August circular introduces a significant change in the method of determining Point of Presence (PoP) charges for NPS and NPS Lite. The PFRDA has eliminated the distinction that previously existed between standard schemes and those launched under the ‘Multiple Scheme Framework’ (MSF). Additionally, a separate framework regarding the classification and presentation of NPS schemes was issued on August 28. The revised PoP charge structure will come into effect on October 1, 2026, and Central Recordkeeping Agencies (CRAs) will begin deducting these charges starting from the third quarter of the 2026-27 financial year.

However, there is a crucial exception. The revised charge structure does not cover PoP charges for schemes falling under Regulation 4A of the ‘Exit Regulations.’ The PFRDA has stated that charges for such ‘4A schemes’ will continue to be determined in accordance with their respective guidelines and circulars. The PFRDA has also directed PoPs to clearly display their revised charges on their websites, enabling subscribers to view the applicable fee structure before availing of PoP services.

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