NPS – Revised guidelines on contribution collection and service charges

NPS – Revised guidelines on contribution collection and service charges

PENSION FUND REGULATORY

AND DEVELOPMENT AUTHORITY

1st Floor, ICADR Building, Plot No.6,

Vasant Kunj, Institutional Area,

Phass-II, New Delhi-110070.

CIRCULAR

PFROA/ 2016/CORP/23/1

January  12, 2016

To,

All Points of Presence, Central  Recordkeeping  Agency

Subject:  Revised  Guidelines   in  respect  of Contribution Collection and Service
Charges for opening  NPS accounts for NRls

With  a view  to promote NPS among  Non-Resident   Indians (NRls),  through  Points of Presence (POPs)  the  following changes   have   been   made   in  the  service   chargestructure  and contribution  collection.

A.  Service  Charge  structure  applicable  to POPs   for  NPS accounts  for NRls  sourced and serviced  abroad  :

Intermediary	Charge Head	Service Charges	Method of Collection
POP	Initial Subscriber Registration	USD 8 or Equivalent  in local currency.	To be Collected Upfront
	Initial Subscriber & all Subsequent  Contribution	USD 1,  or Equivalent in local  currency or 1%, whichever is higher subject  to maximum of USD 8 or Equivalent  in local currency .
	All Non-FinancialTransaction	USD 1, or Equivalent  in local currency

(i)  Charges  for all other  intermediaries remain the same.

(ii) For NPS account of NRIs sourced domestically but serviced abroad, i.e. contribution  and other  non-financial transactions being done abroad by the POP, the charge for overseas servicing would  apply.

(iii)    For NPS account  of NRI sourced  overseas  but serviced  in India i.e. contribution and  other  non-financial   transaction being done  in   India,  the  charge  for  domestic servicing  under the existing  All Citizen Model would apply.

(iv)   The contribution  amounts shall  be paid by the  NRls  either by inward  remittance through  normal  banking  channels  or out of funds  held  in their own  NRE/FCNR/NRO account.

B.  Contribution structure for NPS Accounts when serviced abroad would be as under:

Particulars	Tier I	Tier II
Minimum Contribution  at the  time  of account opening	Rs.6,000/-	Rs.2,000/-
Minimum amount per contribution	Rs.2,000/-	Rs.2,000/-
Minimum contribution  in  a   financial year	Rs.6,000/-	Rs.2,000/-
Minimum frequency of contributions per financial year	1	1

While servicing these accounts domestically, the contribution criteria will remain the same as applicable to the existing NPS A/cs under the All Citizen Model.

2. Once the NRI status of the subscriber changes to Resident status, the subscriber will inform the same to CRA/POP for updating the same in the CRA system.

Yours faithfully

(Akhilesh Kumar)

Deputy General Manager