20k/yr on ₹1cr corpus; All about NPS PoP fee

The National Pension System (NPS) has introduced a standardised Point of Presence (PoP) charge structure effective from October 1, 2026. This new charge applies to both existing subscribers and those opening new accounts through a PoP. The PoP charge is currently set at 0.20% of the NPS corpus, plus applicable taxes, annually. For a new account, there is also a one-time onboarding fee of ₹200, paid in four quarterly instalments of ₹50.

The 0.20% charge is not the only cost associated with NPS. Other expenses like pension fund management charges, recordkeeping, NPS Trust and custodian charges, and applicable taxes can also apply. Therefore, investors should consider the overall charge structure rather than solely focusing on the 0.20% figure.

To put the 0.20% charge into perspective, consider an NPS corpus of ₹5 lakh, ₹1 crore, or ₹10 lakh. At ₹5 lakh, the annual charge amounts to ₹20,000; at ₹1 crore, it becomes ₹20,000 per year; and at ₹10 lakh, it equates to ₹20,000 annually. As the corpus grows, the absolute rupee impact of the charge increases, making it more relevant for those building a large retirement corpus over several decades.

If you have an existing NPS account through a PoP, you cannot switch to e-NPS or direct bank transfers (D-Remit) to avoid the charge. The PoP charge will continue to apply even if subsequent contributions are made through e-NPS or D-Remit. You would need to check how your PRAN was opened and explore the change-of-PoP facility, if applicable, but the 0.20% charge may still persist.

Direct e-NPS onboarding with subsequent contributions through e-NPS or D-Remit does not incur PoP charges. To avoid the PoP charge, it is advisable for existing NPS subscribers to verify their account onboarding route and review the current charge schedule associated with their account and PoP.