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From April 1, NSDL to reduce charges for NPS subscribers drastically

PRA maintenance charge to be cut to Rs 95 from Rs 190; account opening fee to Rs 40 from Rs 50

Press Trust of India  |  New Delhi 


Under pressure from competition, National Securities Depository Limited (NSDL), e-Governance infrastructure, has decided to drastically cut maintenance and account opening charges for subscribers of the National Pension System (NPS) from April 1.

With Computershare joining the as second Central Recordkeeping Agency (CRA) from February 15, the will cut Permanent Retirement Account (PRA) annual maintenance charge to Rs 95 from Rs 190 and account opening fee to Rs 40 from the current Rs 50. It will also reduce fee from the current Rs 4.

"e-Governance Infrastructure Ltd would be rationalising its charge structure W.E.F. April 1, 2017, which would be Rs 40 for opening, Rs 95 for Annual Maintenance and Rs 3.75 for each transaction," Pension Fund and Regulatory Development Authority (PFRDA) said.

The new entrant has fixed the account opening charge at Rs 39.36, maintenance cost at Rs 57.63 and charge at Rs 3.36.

A CRA is responsible for recordkeeping, administration and customer service functions for all subscribers. The function includes receiving instructions from subscribers through the points of presence, transmitting such instructions to pension funds and effecting switching instructions received from subscribers.

further said Computershare will start its operations, as second CRA, for servicing of accounts sourced through e-module of Trust with effect from February 15 and other distribution channels from February 21.

"It has been decided that Karvy Computershare would be allowed to service the new accounts till March 31, 2017, and thereafter it would be allowed to function as a full-fledged CRA with interoperability functionality providing for an option to shift for existing subscribers of NPS from April 1, 2017, onwards," the regulator said.

The subscriber would be provided with an option to choose between NSDL e-governance and Karvy Computershare.

"The criteria of allocation of subscribers shall be notified by the Authority from time to time having regard to the subscribers' interest," added.

As on January 17, the overall number of NPS and Atal Pension Yojna subscribers had crossed 1.42 crores with Asset Under Management (AUM) of Rs 1.61 lakh crore.

First Published: Mon, February 13 2017. 16:41 IST