To encourage financial agents, PFRDA has been allowed to charge fees ranging between Rs 5 and Rs 5,000 from shareholders who join NPS through an online platform. PFRDA has taken this step to promote pension schemes. The financial agent is called POP (Point of Presence). e-NPS platform has been started for opening and NPS online contribution account to shareholders.
The service fee will be applicable to the same customers who are affiliated with a POP and will also apply to the shareholders who have opened the account using PAN or ICICI NPS KYC verification using the e-NSPS platform. In view of encouraging POP to promote NPS, it has been suggested that PFRDA may consider allowing POP for certain service charges as it is in case of other financial products.
The regulator said that in addition to the payment facility fee, the service charge has been decided on contributions through EPS. This service charge will get the POP associated with the shareholder at the time of contribution.
According to the Pension Fund Regulatory and Development Authority (PFRDA) in a circular, the service tax will be 0.05 percent according to the contribution amount.
It will be minimum five rupees and a maximum of 5000 rupees per deal. The service charges received through the ENPS platform will be given on the respective POP on a quarterly basis. However, these service fees will not apply to the shareholders who have opened the account through basis on ENSPS.
Change in the rules of NPS
Account holders will now be allowed partial insertion in special emergency situations. PFRDA i.e. pension fund regulatory and development authority has made changes in the exit and withdrawal rules of NPS. Under this rule, money was not allowed in such a way.
Now, under the partial withdrawal facility of NPS, investors have been given partial exemption to withdraw money. Under which the investor can now withdraw up to 25% of his contribution. Only 25 percent of the person’s contributions will be included in this. Keep in mind that the interest on the company and contribution will not be exempted.
The NPS will be able to take a partial withdrawal of children’s education and marriage, to build homes, treat special diseases, treat themselves, wife, children and dependent parents.
Under the new rules related to NPS, the money can be withdrawn only after completion of 10 years in the scheme and it will be possible to withdraw only 3 times during the scheme. Apart from this, money will be allowed only after every 5 years.
Under the new rule of NPS, corporate investors will have 60 years of retirement age. For which the stated retirement age of the company will be valid. At the age of 60, the NPS account was closed for the lump sum amount. But now, 15 days before retirement, facility of continuation of NPS account has been given. NPS can now be deposited for 70 years