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.
* 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