The Pension Fund Regulatory and Development Authority (PFRDA) has postponed the rollout of revised charges for Points of Presence (PoPs) under the National Pension System (NPS) and NPS Lite by two months. The updated charges, originally scheduled to take effect on October 1, will now be implemented from December 1.
In a circular issued on October 26, the regulator revised the implementation date mentioned in its earlier circular dated August 28. It has instructed Central Recordkeeping Agencies (CRAs) to apply the revised charge-deduction structure from the new effective date.
The latest notification changes only the implementation timeline. All other provisions outlined in the August circular remain unchanged.
PFRDA Revises NPS and NPS Lite Charges Timeline
Points of Presence are intermediaries that help subscribers access NPS services, including opening pension accounts and carrying out related transactions. Central Recordkeeping Agencies maintain subscriber information and support the administration of NPS accounts.
The revised charge structure covers PoPs operating across schemes under both NPS and NPS Lite. PFRDA has not announced any additional changes to the charges in its October 26 circular. The only revision is the postponement of implementation from October 1 to December 1.
PhonePe Launches Digital NPS Account Opening Facility
Separately, PhonePe has introduced a digital facility that allows users to open a National Pension System account through its app. Under the service, called Tatkal NPS, users can begin with an initial contribution of ₹250.
Announced on October 27, the facility uses existing bank KYC details and one-time password (OTP) authentication. According to the company, this allows eligible users to complete the account-opening process without uploading documents again.
PhonePe has partnered with banks to provide the service and plans to extend it to more banking institutions in the future.
How to Open an NPS Account Through PhonePe
Users can start by searching for NPS on the PhonePe app and selecting the National Pension Scheme option. They can then choose a linked bank account and verify it using an OTP.
Once verification is complete, the initial contribution can be made through PhonePe UPI. The process generates a Permanent Retirement Account Number (PRAN), which acts as the unique identification number for the subscriber’s NPS account.
The service operates under PFRDA’s Tatkal NPS framework, which enables eligible subscribers to use their existing bank KYC details when opening an account.
What Is NPS, and Who Can Benefit?
The National Pension System is a government-regulated, defined-contribution retirement savings scheme. Subscribers contribute money towards building a retirement fund, while the eventual benefits depend on their contributions, investment performance and the applicable withdrawal and annuity rules.
PhonePe said the new facility is intended to make retirement savings more accessible, particularly for people who do not receive pension benefits through an employer. This includes gig workers, freelancers and small business owners.
While the digital process may make account opening more convenient, creating a substantial retirement fund requires consistent contributions over time. Opening an account and making the first payment are only the initial steps towards long-term retirement planning.
Disclaimer: This article is for general informational purposes only and is based on the details provided in the referenced announcements. NPS charges, account-opening eligibility and retirement benefits are subject to applicable PFRDA rules and official updates. Readers should consult PFRDA or the relevant authorised service provider for the latest information before making financial decisions.