NPS charges explained: PFRDA clarifies CRA, PRAN, AMC rules; provides Atal Pension Yojana update

As per PFRDA’s latest clarification about different types of charges for NPS subscribers, AMC for a Tier II NPS account will be aligned with the AMC applicable to a Tier I account under the respective sector (Government/private sector), each pension scheme maintained within a PRAN will be treated as a separate account, while a 10% AMC charge of the applicable AMC charged by CRA will be applied to a dormant Tier I or Tier II account.

These are some of the clarifications on the charge structure of Central Recordkeeping Agencies (CRAs) under pension schemes regulated by Pension Fund Regulatory and Development Authority (PFRDA). The charges will be applicable for subscribers under pension schemes like National Pension System (NPS), as per the PFRDA circular dated April 29, 2026. Here are the key changes that PFRDA has clarified on in its circular.

Annual Maintenance Charge (AMC) under NPS

The regulator has said that AMC for Tier II NPS accounts will now be aligned with the charges applicable to Tier I accounts within the same sector (government or private). However, there is a small relief for low-balance accounts: no AMC will be charged on Tier II NPS accounts if the balance is up to Rs 1,000 at the end of a quarter.

PRAN accounts

The regulator has said that AMC for Tier II NPS accounts will now be aligned with the charges applicable to Tier I NPS accounts within the same sector (government or private). However, there is a small relief for low-balance accounts as no AMC will be charged on Tier II NPS accounts if the balance is up to Rs 1,000 at the end of a quarter.

AMC on dormant account

AMC will be levied at 10% of the applicable AMC charged by a CRA to such a Tier I or a Tier II account.

How AMC will be calculated

To calculate the applicable AMC, the NPS account's corpus at the end of a quarter will be considered.

PRAN opening charge

PFRDA says the PRAN opening charge will apply only at the time of initial PRAN generation. For activation or opening of each account (Tier I/Tier II) within an existing PRAN, the charge will be NIL.

AMC for nil-balance Atal Pension Yojana (APY) and NPS accounts
AMC for accounts with a nil balance under APY & NPS-Lite will also be nil.

When can a CRA collect AMC?

The applicable charges will be collected by CRAs at the end of each quarter by way of invoice raised on the concerned entity (in respect of accounts where the employer bears CRA charges), or through unit deduction from the subscriber’s account, as applicable.

When will an NPS account be considered dormant?

A dormant NPS account means an account where no contribution is received for four (4) consecutive quarters. Such an account will be flagged as ‘dormant’ during the first week of the subsequent quarter in the CRA system.

The reduced AMC of Rs 1,000 will apply for such subsequent quarters and will continue till the time the account remains dormant.

Upon the receipt of contribution during a quarter, the account will be flagged as ‘active’ during the first week of the subsequent quarter.

From July 1, 2026, CRAs will ensure that the flagging of dormant or active accounts based on the above criteria is made effective.

NPS charges

Intermediary	Charge Head	CRA	Physical PRAN card (₹)	ePRAN - Welcome kit sent in physical (₹)	ePRAN - Welcome kit sent via email only (₹)	Lite/APY
CRA	PRAN Opening charges	PCRA	40	35	18	15
		CCRA	40	-	18	15
		KCRA	39.36	39.36	4	15
Note:	The reduction in charges will be on the current charge structure and excludes applicable taxes.
	Charges will be applicable post release of the functionalities by CRAs to capture the choice of NPS subscribers to have physical or ePRAN card.