PFRDA NPS Maintenance Charges: PFRDA has issued a new update for NPS subscribers, introducing significant changes to the maintenance charges applicable to Tier II and dormant accounts.

PFRDA NPS Maintenance Charges: There is major news for those investing in the National Pension System (NPS). The Pension Fund Regulatory and Development Authority (PFRDA) has implemented substantial changes to the rules governing service charges levied by Central Recordkeeping Agencies (CRAs). Issued in reference to a circular dated September 15, 2025, these new rules will come into full effect starting July 1, 2026. Their primary objective is to rationalize charges and enhance transparency for subscribers.

How will Tier I and Tier II charges be structured now?

According to the new regulations, the Annual Maintenance Charge (AMC) applicable to NPS Tier II accounts will now be exactly the same as that prescribed for Tier I accounts. This means that, depending on your sector (Government or Private), an identical maintenance fee will be levied on both accounts. However, this includes a concession for small investors: if the balance in your Tier II account stands at ₹1,000 or less at the end of a quarter, no AMC will be charged to you. Furthermore, under a single PRAN card, Tier I and Tier II will be treated as distinct accounts, and separate AMCs will apply to each. A welcome feature is that the PRAN opening charge will be payable only once—at the time of the initial registration. If you open a new Tier I or Tier II account under an existing PRAN, no additional charges will be levied for doing so.

What fees apply if an account becomes ‘Dormant’?

PFRDA has also clarified the position regarding inactive or ‘dormant’ accounts. If an account receives no contributions for four consecutive quarters (one year), it will be declared ‘dormant’ during the first week of the subsequent quarter. A Relief: You will not be required to pay the full maintenance charges on dormant accounts. For such accounts, only 10% of the standard Annual Maintenance Charge (AMC) will be levied.

How to Reactivate?:

As soon as you resume making investments in the account, it will be deemed 'Active' again starting from the first week of the subsequent quarter, at which point standard charges will apply.

What happens to Zero-Balance Accounts?

Subscribers covered under the APY (Atal Pension Yojana) or NPS Lite schemes who hold a zero balance in their accounts will not be charged any maintenance fees. Clarity has also been provided regarding the method of collecting these charges. At the end of every quarter, the CRA will collect the dues either by issuing an invoice to the employer or by deducting units directly from the subscriber's account. Please note that the AMC will always be calculated based on the total corpus (accumulated funds) present in your account at the end of the quarter.