NPS News: PFRDA has issued a circular regarding changes in fees. Actually, the responsibility of making it easier for the customer to open and operate the NPS account is given to the Point of Presence (POP).
Pension regulator PFRDA has changed the fee structure of Centers (POPs) that facilitate National Pension Scheme (NPS) account opening. The minimum and maximum limits of fees for various facilities provided by these centers have been fixed. Earlier these centers had the freedom to bargain with NPS members.
PFRDA has issued a circular regarding changes in fees. Actually, the responsibility of making it easier for the customer to open and operate the NPS account is given to the Point of Presence (POP). These are selected by the regulator himself. POP has a complete branch network. POP is an important link between the customer and NPS. These centers charge some fee for providing services to the customer.
Who are included in POP
Banks, NBFCs and other financial entities are selected as POPs by pension regulator PFRDA. They enroll people in NPS and provide many other facilities to the members. POP also gets commission on opening a new account.
That’s why the fee changed
The change has been made in the fees that NPS service provider POP centers will charge. Earlier there was no limit on the fees charged by POPs. For this, customers used to bargain with them. Now the limit has been set. However, in some cases customers will be able to bargain like before.
How much fee will have to be paid
1. If a person does initial registration in NPS, he will have to pay Rs 200 to Rs 400 to POP.
2. Similarly, up to 0.50 percent fee will have to be paid on initial contribution. It will be between minimum Rs 30 and maximum Rs 25 thousand.
3. A fee of Rs 30 has been fixed for all non-financial transactions.
What is NPS?
National Pension Scheme is a social security initiative by the Central Government. It was started in 2004 for government employees but in 2009 it was opened to all categories. The National Pension Scheme is a voluntary and long-term investment scheme for retirement. After completing the age of 60 years, the member gets one part of the amount and starts getting pension from the other part. Almost all banks offer NPS facility.
