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The Pension Fund Regulatory and Development Authority (PFRDA) has revised the fee structure for Point of Presence (POPs) or NPS distributors in which it has allowed pension fund managers to pay up to Rs.400 to onboard new subscribers.
The pension fund regulator has raised the ceiling from Rs.200.
POPs are the first point of interaction of the NPS subscriber. These entities act as collection points and extend a number of customer services to NPS subscriber including requests for withdrawal from NPS. Generally, banks and national distributors are POPs. Further, a few companies appoint pension agents who also gets similar payout structure.
Also, the PFRDA has allowed pension fund managers to pay up to 0.50% of the contribution size as commission payout subject to maximum of Rs.25,000.
POPs can charge up to Rs. 30 for non-financial transactions like updating mobile number, email id or address.
Further, POPs can get persistency charge on incremental contribution. They can charge up to Rs. 50 for contributions between Rs. 1,000 and Rs. 2,999, Rs. 75 for contributions between Rs. 3,000 and Rs. 6,000, and Rs. 100 for contributions above Rs 6,000, applicable only under the NPS All Citizen model. These charges are deducted through unit cancellation.
Persistency charges are payable to POPs where the subscriber has been associated for more than six months in a financial year.
For e-NPS, the charge for subsequent contributions is up to 0.20% of the contribution, with a maximum of Rs. 10,000, applicable only to NPS All Citizen and Tier-II accounts and collected upfront.
Similarly, the trail commission for D-Remit contributions is also up to 0.20% of the contribution, with a cap of Rs. 10,000 and is deducted periodically through unit cancellation.
Processing an exit or withdrawal incurs a charge of up to 0.125% of the corpus, with a maximum of Rs. 500, collected upfront.
Let’s look at the table to know more about charges:
|
Intermediary |
Service |
Charges |
Method of Deduction |
|
|
(i) Initial Subscriber Registration |
Upto maximum Rs.400/- |
To be collected upfront
|
|
(ii) Initial Contribution |
Upto 0.50% of the contribution, subject to maximum Rs.25000/-
|
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|
(iii) All Subsequent Contribution |
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|
(iv) All Non-Financial Transaction |
Upto maximum Rs.30/-
|
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(v) Persistency*
|
Rs.50/- p.a. for annual contribution Rs.1000/ to Rs.2999/- Rs.75/- p.a. for annual contribution Rs.3000/ to Rs.6000/- |
Through cancellation of units
|
|
|
POP (Point of Presence)
|
|
Rs.100/- p.a. for annual contribution above Rs.6000/- (Only for NPS All Citizen model) |
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(vi) e-NPS (for subsequent contribution)
|
Upto 0.20% of the contribution, subject to maximum Rs.10,000/- (Only for NPS All Citizen and Tier - II Accounts) |
To be collected upfront
|
|
|
(vii) Trail commission for DRemit Contributions
|
Upto 0.20% of the contribution subject to maximum Rs. 10,000/- (Only for NPS All Citizen and Tier - II Accounts) |
Through unit deduction on periodical basis
|
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|
(viii) Processing of Exit/Withdrawal |
Upto 0.125% of Corpus subject to maximum Rs.500/- |
To be collected upfront |
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*1. Persistency charges is payable to such POPs to which the subscriber is associated for more than six months in a financial year.
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For NPS-Lite/Swavalamban, POPs can charge up to 0.25% of the total contribution in a financial year, with a minimum of Rs. 20.