The Master Circular, issued by the Pension Fund Regulatory and Development Authority (PFRDA) on 25th April 2024 and updated on 31st January 2025, consolidates all previous circulars related to service charges that Points of Presence (POPs) can collect under the National Pension System (NPS) and NPS-Lite frameworks. It is designed to standardize fee structures, incentivize POPs to enhance customer service, and ensure regulatory compliance and transparency.
The circular is divided into five main parts. Part I, the Introduction, explains that the circular is issued under the authority of Section 14 of the PFRDA Act, 2013 and Regulation 16 of the POP Regulations, 2018. It aims to consolidate various previous instructions into a single, unified framework, ensuring that any actions taken under earlier circulars remain valid even after their rescission.
Part II, the General Guidelines, outlines the broader regulatory requirements. POPs must comply with the Master Circular along with the PFRDA Act and other applicable laws. The guidelines emphasize the importance of legal continuity, ensuring that historical fee practices and actions remain unaffected by the new consolidation.
Part III details the Service Charges for POPs. It specifies that the initial subscriber registration fee is capped at ₹400 and collected upfront. For initial contributions, POPs may charge up to 0.50% of the contribution, subject to a maximum of ₹25,000. Subsequent contributions follow a similar structure. Non-financial transactions incur a fee of up to ₹30 per transaction. Persistency charges are tiered: ₹50 per annum for contributions between ₹1,000 and ₹2,999, ₹75 for ₹3,000 to ₹6,000, and ₹100 for amounts above ₹6,000, applicable only when a subscriber remains with the same POP for more than six months. For e-NPS transactions, a fee of up to 0.20% (capped at ₹10,000) is collected upfront, and a similar fee is applicable as a trail commission for D-Remit contributions, deducted periodically. Exit or withdrawal processing attracts a fee of up to 0.125% of the corpus, capped at ₹500.
Part IV sets Specific Guidelines, stating that the new fee structure takes effect from 31 January 2025, while allowing POPs to negotiate fees within prescribed limits. It mandates that fee structures be clearly disclosed on POP websites and during transactions. For NPS-Lite/Swavalamban, subsequent transaction fees are 0.25% (minimum ₹20) and non-contribution transactions incur a nominal fee of ₹10, while aggregators are prohibited from collecting upfront fees.
Finally, Part V consolidates previous circulars and archives older ones, ensuring legal continuity and clarity in fee collection practices. Overall, the circular enhances transparency, operational efficiency, and subscriber protection while incentivizing high-quality service delivery by POPs.
