PFRDA says that this move will give a boost to POPs as they put in a lot of effort and use their resources to open an NPS account. The move is aimed at providing compensation to the POPs, who are still incurring losses in terms of fees.
National Pension Scheme Regulator, Pension Fund Regulatory and Development Authority has now changed the rules of National Pension Scheme (NPS). Now the Point of Presence (PoP) opening NPS account will get commission.
POPs include banks, NBFCs and other entities. They register people in NPS and provide many more facilities to the subscribers. From September 1, 2022, POP will get commission from Rs 15 to Rs 10 thousand on opening the account. PFRDA says that this move will give a boost to POPs as they put in a lot of effort and use their own resources to open an NPS account.
The move is aimed at providing compensation to the POPs, who are still incurring losses in terms of fees. PFRDA has clarified that this commission will be payable to the POP when the customer opts to send money directly from his account to the concerned entity under the ‘All Citizen Model’.
You will get 0.20% commission on investment amount
As per the new rules of PFRDA, it has been decided to give commission to the POPs supporting the expansion of NPS for a fixed period from 1st September 2022. The pension regulator said that transferring money directly from the bank account to the agency concerned for contribution to the National Pension System is similar to e-NPS.
The commission on this will be given to the POP. On direct money transfer, the POP will be given a commission of 0.20 percent over a certain period. The commission will be a minimum of Rs 15 and a maximum of Rs 10,000. This commission will be taken from the customer only. This will be recovered by reducing the number of units he has invested in at fixed intervals.
National Pension Scheme is a social security initiative by the Central Government. It was started in 2004 for government employees. But in 2009 it was opened to all classes. National Pension Scheme is a voluntary and long term investment scheme for retirement.
