NPS, UPS, and Atal Pension Yojana Charges to Change from October 1: New Fee Structure Explained

From October 1, 2025, subscribers of the National Pension System (NPS), Unified Pension Scheme (UPS), Atal Pension Yojana (APY), and NPS-Lite will see changes in the fees levied by Central Recordkeeping Agencies (CRAs). The Pension Fund Regulatory and Development Authority (PFRDA) has announced a revised fee structure, replacing the one in place since June 2020.

The new structure is aimed at streamlining charges while ensuring transparency for government, private, and pension scheme subscribers. Importantly, PFRDA has clarified that these charges represent the maximum cap, and CRAs cannot levy fees beyond this limit.

Fees for Government Sector Subscribers (NPS and UPS)

For government employees under NPS and UPS, the following charges will apply:

• PRAN generation:

  • ₹18 for an e-PRAN kit

  • ₹40 for a physical PRAN card

• Annual maintenance charge (AMC): ₹100 per account

• Zero-balance accounts: No charges will be deducted

• Transaction charges: Nil

This ensures that government sector employees continue to enjoy relatively lower costs while maintaining their retirement accounts.

Fees for Atal Pension Yojana (APY) and NPS-Lite

For subscribers of APY and NPS-Lite:

• PRAN opening: ₹15

• Annual maintenance: ₹15 per account

• Transaction fees: Nil

This keeps pension schemes affordable for low- and middle-income subscribers, reflecting the government’s intent to promote wider participation in social security programs.

Fees for Private Sector (NPS and NPS Vatsalya)

Private sector employees and voluntary NPS contributors will face the following charges:

• PRAN generation:

  • ₹18 for an e-PRAN kit

  • ₹40 for a physical PRAN card

• Transaction fees: Nil

Similar to the government sector, private subscribers will not be charged for transactions, keeping account operations simple.

Slab-Based Annual Maintenance Charges (AMC)

Unlike a flat annual fee earlier, the new AMC model is slab-based, depending on the size of the investment corpus. The charges are:

• Zero balance: No charge

• ₹1 – ₹2 lakh corpus: ₹100

• ₹2,00,001 – ₹10 lakh corpus: ₹150

• ₹10,00,001 – ₹25 lakh corpus: ₹300

• ₹25,00,001 – ₹50 lakh corpus: ₹400

• Above ₹50 lakh corpus: ₹500

This tiered approach ensures fairness, as subscribers with higher investments contribute slightly more toward system maintenance.

Key Guidelines Issued by PFRDA

1. Maximum Fee Limit – The announced fees are the upper cap. CRAs cannot charge above these amounts but may offer lower fees in consultation with customers, companies, and Points of Presence (PoPs).

2. Applicability –

   • For private sector subscribers, AMC will be slab-based and apply only to Tier-I accounts.

   • For government sector UPS subscribers, charges will apply only during the accumulation phase. Separate charges for pension distribution may be introduced later.

3. Future Services – If CRAs introduce new services, fees will be determined on an actual cost basis, subject to PFRDA approval.

4. Transparency Mandate – All CRAs must clearly display their charges on websites and mobile apps to ensure transparency for subscribers.

5. Legal Backing – The changes have been issued under Section 14 of the PFRDA Act, 2013. They also align with the completion of the five-year price discovery cycle mandated under CRA regulations.

What This Means for Subscribers

• Lower Income Groups (APY and NPS-Lite): The impact is minimal, with annual charges as low as ₹15, ensuring affordability.

• Government Employees (NPS/UPS): Slight revision in PRAN charges, but annual maintenance remains modest at ₹100.

• Private Sector Investors: AMC will now depend on investment size. Those with higher corpus will pay slightly more, though still capped at ₹500 annually.

• Overall Transparency: With the new rules, subscribers can expect clarity in fee deductions, as all CRAs must publish charges openly.

Final Word

The upcoming changes from October 1, 2025, mark an important step in making pension schemes more structured, transparent, and equitable. With slab-based annual charges and strict fee caps, the PFRDA aims to balance affordability for small investors with sustainability for pension recordkeeping agencies.

Subscribers should review their accounts, especially those in the private sector with larger investments, to understand the exact AMC applicable to them. While the changes are modest, they emphasize the regulator’s focus on fairness, digital transparency, and financial inclusion in India’s pension ecosystem.