Outlook Business Desk
From July 1, 2026, Pension Fund Regulatory and Development Authority (PFRDA) will implement a revised charge framework for National Pension System (NPS) accounts, tightening rules around maintenance fees and ensuring a more uniform structure across account types and usage patterns.
Tier II account maintenance charges will now be the same as Tier I within government or private sectors, removing earlier differences and making voluntary NPS accounts cost similar to core retirement accounts.
PFRDA has introduced a safeguard for small investors by ensuring no annual maintenance charge on Tier II accounts if the balance remains up to ₹1,000 at the end of a quarter, supporting low-value or inactive accounts.
Under one Permanent Retirement Account Number, each scheme will be treated separately. Equity, corporate bond and government securities options may attract separate maintenance charges, increasing costs for investors with multiple allocations.
An NPS account will be marked dormant if no contribution is made for four consecutive quarters. Once classified, it will still attract charges at 10% of the applicable rate until contributions resume.
Maintenance charges will be calculated based on the total corpus value at the end of each quarter. This removes variation during the period and ensures a fixed reference point for determining applicable fees.
PRAN opening fee will be charged only once at account creation. However, activating additional Tier I or Tier II accounts under the same PRAN will not involve any extra onboarding charges.
NPS-Lite and Atal Pension Yojana accounts will not be charged maintenance fees if the balance is zero. This protects low-income subscribers and ensures no cost burden during periods of inactivity.
The updated structure increases clarity but also raises costs for some users. Tier II loses cost advantage, multiple schemes may cost more and dormant accounts will still incur charges, prompting investors to review usage and long-term impact.