What Are POP Charges Under NPS?

The NPS offers social security in the form of pension. However, there are various service charges that a subscriber needs to pay under the NPS architecture. Let us understand the charges levied under the National Pension Scheme in detail.

Before finding out about the various types of charges, let us first understand the role of a POP in the context of the NPS. POP stands for Point of Presence. For transacting in the NPS through the offline mode, one has to visit a POP. It is the first touchpoint for an NPS subscriber and facilitates many customer services such as registration of the subscriber, processing of forms, verification of subscriber information, etc. These processes are executed by a POP-SP, which is short for a Point of Presence-Service Provider. POP-SPs are authorised branches of the POP spread across the country.

All POP charges are collected upfront by the POP-SP. The first-time subscriber registration charges are Rs. 100 plus 0. 25% of the initial contribution amount. All subsequent contributions can be made at a charge of 0. 25% of the contribution amount. It is essential to note that both initial and subsequent transaction charges are subject to a minimum charge of Rs. 20 and a maximum of Rs. 25,000.All other transactions that do not involve making a contribution are charged at Rs. 20 per transaction. Such other transactions include withdrawal request, change in subscriber information, change of investment scheme or fund manager, issuance of printed account statement, etc.

CRA stands for Central Record Keeping Agency. Earlier, NSDL e-governance infrastructure was the only CRA for NPS but now even Karvy carries out functions of record-keeping, administration and customer service for NPS subscribers.

CRA charges are exacted by cancelling the number of units that represent the amount involved.

Apart from the fees and charges discussed above, there are various ancillary charges associated with NPS investments such as investment management fees, custodian fees and the trustee bank’s fees. These service charges need to be levied for the smooth functioning of NPS services.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.