PFRDA Clarifies CRA Charges for NPS, APY, and NPS‑Lite Accounts

The Pension Fund Regulatory and Development Authority has issued a clarification on the charge structure applicable to Central Recordkeeping Agencies. The circular issued on April 29, 2026, outlines revised norms for annual maintenance charges, dormant accounts, and PRAN-related fees across regulated pension schemes.

The changes aim to standardise charges while reducing costs for small-balance and inactive accounts. The revised framework will be implemented in a phased manner.

Revised AMC Norms for Tier I and Tier II NPS Accounts

Under the updated framework, the annual maintenance charge for Tier II NPS accounts will be aligned with the AMC applicable to Tier I accounts. The applicable AMC will depend on whether the subscriber falls under the government or private sector category.

However, Tier II accounts with a corpus of up to ₹1,000 at the end of a quarter have been exempted from AMC. This exemption is intended to protect small-balance subscribers from erosion due to recurring charges.

PRAN-Level Treatment of Pension Accounts

The regulator has clarified that each pension scheme maintained under a Permanent Retirement Account Number will be treated as a separate account. This applies uniformly to both Tier I and Tier II accounts.

As a result, AMC will be levied individually for each scheme under the same PRAN. The clarification removes ambiguity around consolidated charging and establishes a scheme-wise fee application approach.

Charges Applicable to Dormant Accounts

For dormant pension accounts, CRAs will levy AMC at 10% of the applicable charge. An account will be classified as dormant if it does not receive any contribution for 4 consecutive quarters and is flagged as inactive in the CRA system.

Once a contribution is received, the account will be marked active in the subsequent quarter. These provisions related to dormant accounts will come into effect from July 1, 2026.

PRAN Opening Fees and Zero-Balance Exemptions

PFRDA has clarified that PRAN opening charges will apply only at the time of initial PRAN generation. No fee will be charged for the activation or opening of additional Tier I or Tier II accounts under an existing PRAN.

The regulator has also set AMC at zero for accounts with nil balance under Atal Pension Yojana and NPS‑Lite schemes. This measure ensures cost neutrality for beneficiaries with inactive or zero-balance accounts under social security-focused schemes.

Read More: EPFO to Roll Out Aadhaar Based E-PRAAPTI Portal to Access Dormant PF Accounts.

Conclusion

The revised CRA charge framework brings greater clarity and uniformity across pension schemes regulated by PFRDA. By exempting small-balance and nil-balance accounts from AMC, the regulator aims to safeguard subscriber interests.

Clear definitions for dormant accounts and scheme-wise AMC application improve transparency. Overall, the changes seek to balance administrative cost recovery with subscriber protection, with implementation beginning from July 1, 2026.

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