NPS Charges Cut From July 2026: New CRA Fee Rules

From 1 July 2026, the account-keeping charges on your National Pension System account get lighter. PFRDA has revised the CRA (Central Recordkeeping Agency) charge structure so that the Tier-II annual maintenance charge is aligned with Tier-I, no annual charge applies if your Tier-II quarter-end balance is Rs 1000 or less, dormant accounts pay only 10 percent of the usual charge, nil-balance APY and NPS-Lite accounts pay nothing, and the PRAN opening fee is charged only once. This is a structural change to recordkeeping fees, not a change to your pension contributions or returns.

Before vs after: the main CRA charges

The table below sets out the NPS CRA charges 2026 position: how the key Central Recordkeeping Agency charges worked earlier compared with the revised structure that PFRDA has notified, effective 1 July 2026. PFRDA has not published new rupee amounts in this revision, so the table describes the structure rather than asserting fee figures that are not confirmed.

CRA charge Before From 1 July 2026
Tier-II annual maintenance charge (AMC) Levied separately for Tier-II Aligned with the Tier-I AMC for the same sector (Government or Private)
Tier-II with low balance AMC applied regardless of balance No AMC if the Tier-II balance is Rs 1000 or less at the end of the quarter
Dormant account Full applicable AMC continued Only 10 percent of the applicable AMC until the account is reactivated
APY and NPS-Lite, nil balance AMC could still apply Nil AMC on accounts with nil balance
PRAN opening fee Charged at PRAN generation Charged only once, at initial PRAN generation; no fee to activate further Tier-I or Tier-II accounts under the same PRAN

A dormant account here means one where no contribution has been received for four consecutive quarters. Such an account is charged at the reduced 10 percent rate until you start contributing again. Each pension scheme held under a single PRAN is treated as a separate account, so the AMC is worked out scheme by scheme.

Who benefits from the new CRA charges

  • Small Tier-II savers. If you parked a small amount in Tier-II and left it, the Rs 1000 quarter-end threshold means a low balance no longer keeps draining through annual charges.
  • People with an idle account. If you stopped contributing for a year or more, your account is flagged dormant and the maintenance charge drops to 10 percent of the usual amount instead of the full charge.
  • APY and NPS-Lite holders with nil balance. Accounts under Atal Pension Yojana and NPS-Lite that show a nil balance attract no AMC at all.
  • Anyone opening extra accounts. Once your PRAN exists, activating an additional Tier-I or Tier-II account under it does not attract a fresh opening fee. The opening charge is a one-time event tied to first PRAN generation.
  • Tier-II users generally. Aligning the Tier-II AMC with the Tier-I rate for the same sector removes a separate, often heavier, Tier-II line of charges.

These are recordkeeping charges levied by the CRA. They are distinct from the fund management charges and the annuity you receive, and the revision does not touch your invested corpus.

How to check your own NPS charges

You do not have to wait for a notice to see what you are being charged. The charges show up as small unit deductions or as an invoice, depending on your account type.

  1. Log in to the CRA portal for your account (the NSDL or KFintech CRA, whichever maintains your PRAN) using your PRAN and password.
  2. Open your Transaction Statement or Statement of Holdings and look for the recordkeeping or AMC deduction lines, usually posted at the end of each quarter.
  3. Check whether your Tier-II quarter-end balance is at or below Rs 1000. If it is, no AMC should be levied from 1 July 2026.
  4. If your account has had no contribution for four consecutive quarters, confirm that only the reduced dormant rate (10 percent of AMC) is being applied.
  5. For an APY or NPS-Lite account with nil balance, verify that no AMC is being deducted.
  6. If a charge looks wrong, raise it with your CRA or Point of Presence first. If you do not get a clear answer, you can file an RTI with PFRDA using the AI RTI Drafter to ask for the applicable charge schedule and the basis of the deduction.

For the wider scheme rules, see the RTI Wiki guides on the National Pension System and on Atal Pension Yojana. If a charge dispute or a pension delay is not resolved, The RTI Playbook walks you through escalating it.

Frequently asked questions

When does the new NPS CRA charge structure take effect?

The revised Central Recordkeeping Agency charge structure applies from 1 July 2026. PFRDA has notified the change for NPS, Atal Pension Yojana and NPS-Lite accounts. It affects only the recordkeeping charges, not your contributions, your investment choice, or your eventual pension.

Will I pay an AMC on a small Tier-II balance?

No. From 1 July 2026, if your Tier-II account balance is Rs 1000 or less at the end of the quarter, no annual maintenance charge is levied on that account for that quarter. Above Rs 1000, the Tier-II AMC is aligned with the Tier-I rate for your sector, Government or Private.

What happens to charges on a dormant NPS account?

A dormant account is one with no contribution for four consecutive quarters. Instead of the full AMC, only 10 percent of the applicable charge is levied on a dormant account until you reactivate it by contributing again. This reduces the cost of leaving an account idle.

Do APY and NPS-Lite accounts still pay an AMC?

If an Atal Pension Yojana or NPS-Lite account has a nil balance, the AMC is nil. There is no maintenance charge on a nil-balance APY or NPS-Lite account under the revised structure.

Is the PRAN opening fee charged every time I open an account?

No. The PRAN opening charge applies only once, at the time your PRAN is first generated. Activating an additional Tier-I or Tier-II account under your existing PRAN does not attract a fresh opening fee.

Sources

Reviewed for RTI Wiki by Dr. Shrawan Kumar Pathak.

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