NPS: Pension regulator PFRDA has changed the fee structure of Points of Presence (POP) which helps open National Pension Scheme (NPS) accounts. The minimum and maximum fee limits for the various facilities provided by these centers have been fixed. Previously, these centers had the freedom to negotiate with NPS members, PFRDA has issued a circular regarding the fee changes.
The Point of Presence (POP) makes it easier for the customer to open and operate their NPS account. The POP has a complete branch network and they are selected by regulators as well. They are considered to be an important link between the customer and the NPS.
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Who is 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 receives a commission on opening a new account.
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Why has the fee structure been changed?
A change has been made in the fees that NPS service provider POP centers will charge. Previously, there was no cap on the fees charged by POPs. As a result, customers had to haggle with them to get a lower price. Now, the cap has been established. However, in certain situations, clients can haggle as before.
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How much will the fee be?
– If a person makes an initial registration in NPS, he or she will have to pay between Rs 200 and Rs 400 to the POP.
– Similarly, a fee of up to 0.50 percent will have to be paid on the initial contribution. This will range from a minimum of Rs 30 to a maximum of Rs 25 thousand.
– A fee of Rs 30 has been set for all non-financial transactions.
