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The Pension Fund Regulatory and Development Authority (PFRDA) has introduced a major change to the Corporate Scheme under the National Pension System (NPS). The scheme has now been bifurcated into two distinct categories: Government Entities and Non-Government Legal Entities. Additionally, certain key charges associated with the NPS have also been revised. These new regulations came into effect on January 1, 2026.

Corporate Scheme Bifurcated into Two Categories
In a circular issued on March 10, 2026, the PFRDA stated that the existing Corporate Category of the NPS will henceforth be classified into two distinct segments:

1.  Government Entities
2.  Legal Entities Other than Government

What Constitutes a Government Entity?
According to the new regulations, a Government Entity comprises organizations that are owned or controlled by either the Central or a State Government. This includes government companies, statutory bodies, corporate entities, and other government units. Furthermore, Central Public Sector Enterprises (CPSEs) and State Public Sector Enterprises (SPSEs) will also fall under this specific category.

Separate Framework for Government Entities
According to the PFRDA, entities that were previously enrolled under the NPS Corporate Model—but which function as an extended arm of the government—will now be brought under the NPS Government Model. Employees of such entities will not be tagged through a Point of Presence (PoP). Consequently, charges associated with the PoP will not apply to these employees.

Revisions to NPS Charges
The PFRDA has also revised the PoP charge structure associated with the NPS. For employees of non-government entities, the annual charge has been fixed at 0.20% of the Assets Under Management (AUM). This fee will be adjusted through the Net Asset Value (NAV) and disbursed to the PoP every quarter. However, this charge will not apply to dormant accounts. 

New Charges for the 'All Citizen Model'
New charges have also been prescribed for accounts under the NPS 'All Citizen Model,' as well as for NPS Vatsalya and NPS Lite accounts. Opening a new account will now incur a one-time onboarding charge of ₹200; however, opening an account digitally will attract a reduced fee of up to ₹100. Furthermore, when opening an account under the 'All Citizen Model,' a minimum initial contribution of ₹250 is mandatory, followed by subsequent minimum contributions of at least ₹10.

Relief for Accounts Opened via e-NPS
The PFRDA has also clarified that investors who open their accounts through e-NPS—and continue to make subsequent investments via the same platform—will not be required to pay charges associated with Points of Presence (PoPs).

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