What is National Pension System?
National Pension System (NPS) is a low-cost and tax-efficient voluntary retirement savings scheme launched under the purview of Pension Fund Regulatory & Development Authority (PFRDA) and Government of India.
It is a social security initiative that encourages people to invest in a pension account at regular intervals during the course of their employment. Here, individual savings are invested by PFRDA regulated professional fund manager into diversified portfolio comprising of Equity, Bonds & Debentures. On retirement, subscribers take out a certain percentage of the corpus upfront & receive the remaining amount as a monthly pension.
Any Indian citizen from the age group of 18 years to 70 years can open a NPS account. Subscribers can start with a lumpsum contribution of Rs. 1,000 in a financial year or through monthly investment of Rs. 500.
How NPS Works?

Quick Account Opening
Open your NPS account digitally in less than 20 mins
Flexibility
Start with just Rs. 1000 per annum through Lumpsum or SIP
Portability
Seamlessly transfer pension account across jobs & location
Well-regulated
PFRDA regulates and monitors investment norms & performance of fund managers
Professionally Managed
Choose from a range of investment options managed by India’s best pension fund managers
Low Cost
Annual fees on investment less than 0.09%
Better Returns
Combination of Equity & Debt offers higher return than traditional retirement schemes
Power of Compounding
Lock-in till the age of 60 years ensures subscribers remain invested for a long period of time
Charges
Point of Presence (PoP) charges
Charge Head | Charges |
---|---|
Account Opering | 200 |
Contribution Processing | 0.50% subject to min 30 and max 25,000 |
Non-Financial Transaction Processing | 30 |
Persistency | Applicable for subscribers (except corporate NPS) active for more than 6months with a POP. |
Pension Fund Manager (PFM) Charges
AUM Slab (in Cr) | PFM charges % for the Slab |
---|---|
Upto 10,000 | 0.09% |
10,001 - 50,000 | 0.06% |
50,001 - 1,50,000 | 0.05% |
1,50,000 and above | 0.03% |
* UTI Retirement Solutions Ltd charges a fee of 0.07% under this slab. |
Central Record Keeping Agency (CRA) Charges
Charge Head | Charges for Kfintech CRA | Charges for NSDL CRA |
---|---|---|
PRAN Generation | 39.36 | 40.00 |
Annual Maintenance | 57.63 | 69.00 |
Financial Transaction processing | 3.36 | 3.75 |
Other Intermediaries Charges
Intermediary | Charge Head | Charges(Annual) |
---|---|---|
Custodian | Custodian Fee | 0.0032% p.a |
NPS Trust | Reimbursement of Expenses | 0.005% p.a |
Payment Gateway Charges
Mode of Payment | Charges |
---|---|
Rupay Debit Card | Nil |
UPI | Nil |
Net Banking | Nil |
Credit Card | Not Available |