Charges and Penalty applicable for not meeting the minimum contribution requirements

If the subscriber contributes less than minimum contribution in a year, then he would have to bear a default penalty of Rs. 100 per year and the account would become dormant.

In order to reactivate the account, the subscriber would have to pay the minimum contributions, along with penalty, due for the period of dormancy.

A dormant account shall be closed when the account value falls to zero.

Eligibility Criteria for Subscriber:

A citizen of India, whether resident or non-resident can join NPS subject to the following conditions:

  • Subscriber should be between 18 - 60 years of age as on the date of submission of his / her application.
  • Subscriber should comply with the prescribed Know Your Customer (KYC) norms as detailed in the Subscriber Registration Form (CS-S1 and CS-S2).

Pre-existing account holders under NPS cannot join again as existing account is portable across geographies and employers. Entity may regulate within these norms but shall not breach these norms.

POP Charges

Subscriber needs to pay the service charges to POP for subscribing to NPS scheme.

  • An Initial subscriber registration charge of Rs.100/- and an ad valorem transaction charge of 0.25% of the initial contribution amount from subscriber subject to a minimum of Rs.20 and a maximum of Rs. 25,000/-.
  • Any subsequent transaction involving contribution - 0.25% of the amount subscribed by the NPS subscriber, subject to minimum of Rs.20/- and a maximum of Rs.25000/-
  • Any other transaction not involving a contribution from subscriber - subject to a charge of Rs.20/-
    Other transactions includes:
    • Change in subscriber details.
    • Change of investment scheme/fund manager.
    • Processing of withdrawal request.
    • Processing of request for subscriber shifting.
    • Issuance of printed Account statement.
    • Any other subscriber services as may be prescribed by PFRDA.


  • At any point in time before 60 years of Age: Subscriber would be required to invest at least 80% of the pension wealth to purchase a life annuity from any IRDA regulated life insurance company. Rest 20% of the pension wealth may be withdrawn as lump sum.
  • On attaining the Age of 60 years and upto 70 years of age: At exit subscriber would be required to invest minimum 40 percent of his accumulated savings (pension wealth) to purchase a life annuity from any IRDA regulated life insurance company.
  • Subscriber may choose to purchase an annuity for an amount greater than 40 percent. The remaining pension wealth can either be withdrawn in a lump sum on attaining the age of 60 or in a phased manner, between age 60 and 70, at the option of the subscriber.
  • In case of phased manner subscriber has to withdraw minimum 10% of the pension wealth (lump sum amount) every year. Any amount lying to the credit at the age of 70 should be compulsorily withdrawn in lump sum.
  • Death due to any cause: In such an unfortunate event, option will be available to the nominee to receive 100% of the NPS pension wealth in lump sum.