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Applicable fees and charges levied on NPS Subscribers

Intermediary

Charge head

Service Charges*

Private / Govt.

Lite/APY

CRA

PRA Opening charges

 

CRA charges for account opening if the subscriber opts for Physical PRAN card

(in Rs.)

CRA charges for account opening if the subscriber opts for ePRAN card (in Rs.)

Rs. 15

Welcome kit sent in physical

Welcome kit sent vide email only

NCRA

40.00

35.00

18.00

KCRA

39.36

39.36

4.00

Note:

The reduction in charges will be on the current charge structure and excludes applicable taxes.

Charges will be applicable post release of the functionalities by CRAs to capture the choice of NPS subscribers to have physical or ePRAN card.

Annual PRA Maintenance cost per account

NCRA: Rs. 69

KCRA: Rs. 57.63

NCRA: Rs. 20

KCRA: Rs. 14.40

Charge per transaction

NCRA: Rs. 3.75

KCRA: Rs. 3.36

Free

   Instant Bank Account Verification

The existing charge structure for Instant Bank Acct verification which shall be recovered by CRAs from the Subscribers for further reimbursement to the service provider is as follows.

(i) K Fin Technologies Pvt Ltd (KCRA)- Rs. 1.90+ tax

(ii) NSDL e-Governance infrastructure Pvt Ltd (NCRA) - Rs. 2.40 + tax

The above charges include Re 1 credited in the SBA of the beneficiary as part of penny drop process.

 

POP

-

Private

Govt.

-

Initial subscriber registration and contribution upload

Rs. 200

NA

NA

Any subsequent transactions

0.25%  of contribution

Min. Rs. 20 Max. Rs. 25000

Non-Financial Rs. 20

NA

NA

Persistency

> 6 months & Rs 1000 contribution

Rs. 50 per annum

NA

NA

Contribution through eNPS

0.10% of contribution,

Min. Rs.10 Max. Rs.10000

NA

NA

Trustee Bank

-

NIL

Custodian

Asset Servicing charges

0.0032% p.a for Electronic segment & Physical segment

PF charges

Investment Management Fee

With effect from 1st April, 2021, following IMF shall be charged by the freshly appointed Pension Funds.

Slabs of AUM managed by the Pension Fund

Maximum Investment Management Fee (IMF)

Upto 10,000 Cr.

0.09%*

10,001 – 50,000 Cr.

0.06%

50,001 – 1,50,000 Cr.

0.05%

Above 1,50,000 Cr.

0.03%

 

 * UTI Retirement Solutions Ltd charges a fee of 0.07% under this slab.

The IMF to be charged by the Pension Fund on the slab structure would be on the aggregate AUM of the Pension Fund under all schemes managed by Pension Funds.

 

These rates of IMF shall be reviewed by the Authority in a period of five (5) years from the date of implementation.

 

NPS Trust

Reimbursement of Expenses

0.005% p.a

* In case of Government employees, CRA charges are being paid by the respective Governments.

                                              

Payment Gateway Service Charge

(Applicable for transactions made on eNPS platform)

Mode of Payment

Method for quotation rate per transaction

Payment Gateway Service Provider

IndiaIdeas.com Limited (Billdesk)

Credit cards

Percentage (%) of transaction value

0.75%

Debit cards

Free

NA

Internet Banking

Flat rate in INR

0

UPI

Free

NA

 

International Comparison of Fees/Charges under NPS

 

International Organisation of Pension Supervisors (IOPS) in its Working Paper 6 “Comparison of Costs + Fees in Countries with Private Defined Contribution Pension Systems” published by Denise Gomez Hernandez and Fiona Stewart had introduced the concept of “Charge Ratio” and “Equivalent Asset Fee” for enabling standardized international comparison of fees due to existence of diversity of charges across countries.

“Charge Ratio” measures the impact that any type of administrative charge can have on the final balance (after 25 or 40 years) of an individual retirement account compared to the hypothetical balance that could be obtained if no administrative fees were charged at all.

“Equivalent Asset Fee” is the annualized charge over assets which would have generated exactly the same final asset accumulation as the actual combination of charges on flows entering the individual account, on the accumulated assets and on the returns applied to the individual retirement account as well as any entry or exit charges applied to an individual retirement account during a certain period of time.
 

Charge Ratio and Equivalent Asset Fee under NPS

Particulars
Private
Government
Lite/APY
Charge Ratio
4.75%
0.72%
0.93%
EAF
0.169%
0.025%
0.032%

 

Assumptions

Monthly Contribution – Rs 1000
Return on Contribution – 8%
Contribution Period – 40 years
Maximum of CRA charges