National Pension System: The Pension Fund Regulatory Development Authority (PFRDA) has increased the service charge of the Points of Presence. This increase is applicable to all citizens and corporations.
National Pension System Latest Rule: There has been a big change in the rules of NPS. The Service Charge of the Points of Presence has been increased by the Pension Fund Regulatory Development Authority (PFRDA). Let us tell you that this increase is applicable for all citizens and corporations.
Changed charges under NPS
It is noteworthy that the service charges related to NPS offered at POP outlets under the National Pension System have increased with effect from February 1, 2022. PFRDA has said in its circular that this fee has been increased to promote NPS and better customer service. Revised charges have been issued for POPs under NPS.
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See Revised Charges of POPs
– Initial customer registration: Rs 200 to Rs 400 (Negotiable with slab only; collected upfront)
– Initial and subsequent transactions: Up to 0.50 per cent of the contribution (minimum Rs 30, maximum Rs 25,000 (Negotiable with slab only; non-financial Rs 30))
– Persistence: More than 6 months in a financial year and Minimum contribution Rs 1,000 to Rs 2,999 : Rs 50 per year
1. For minimum contribution of Rs 3000 to 2999: Rs 50 per year
2. Minimum contribution of Rs 3000 to Rs 6000 For: Rs.75 per annum
3. For minimum contribution above Rs.6000: Rs.100 per annum
Subsequent contribution through ENPS: 0.20 per cent of the contribution (minimum Rs 15, maximum Rs 10,000) (in a lump sum deposit)
– Processing fee of exit and withdrawal service: 0.125 per cent of the corpus with a minimum of Rs 125 and a maximum of Rs 500 Fee will be charged in advance.
This fee also increased
The duty on all contributions has been increased to 0.20 per cent, subject to a minimum of Rs 15 and a maximum of Rs 10,000. But let us tell you that this service charge will not be applicable for the customers registered in eNPS. This new rule is effective from February 15, 2022. Now NPS is a market linked, defined contribution defined-contribution product that requires you to invest regularly in the fund of your choice.
NPS tax exemption increased for government employees
The Finance Minister had announced in the budget that NPS would now contribute 14% instead of 10%. That is, the scope of tax exemption has been increased in the NPS scheme for government employees. Along with this, the Finance Minister announced a plan to bring a new tax reform. Employees will also get tax exemption on pension. At the same time, the contribution of the Center and the state in NPS will now be 14%.