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What are the charges for investing in NPS using Coin?

There are no direct charges for account opening, contributions, exits, withdrawals, or non-financial transactions on NPS through Coin. Instead, a Point of Presence (POP) charge applies on an Assets Under Management (AUM) basis, debited quarterly from your NPS account as units.

The POP charge is 0.2% per annum of your AUM, recovered proportionally from each category based on your allocation. This includes ₹200 for account opening, also debited as units rather than collected upfront.

How the POP charge is calculated

The fee is split across your NPS categories in proportion to your allocation and collected every quarter.

Example: If your total AUM is ₹1,00,000 distributed as follows:

Category AUM Allocation
Equity ₹50,000 50%
Corporate bonds ₹30,000 30%
Government bonds ₹20,000 20%
Total ₹1,00,000 100%

As per PFRDA guidelines, the annual POP charge is 0.2% of ₹1,00,000 = ₹200. On a quarterly basis, this works out to ₹50 + ₹9 (18% GST) = ₹59 per quarter.

The table below shows how Zerodha splits and debits this quarterly charge across each category:

Category Allocation Quarterly fee GST Total Current NAV Units debited
Equity 50% ₹25 ₹4.50 ₹29.50 ₹101 0.292 units
Corporate bonds 30% ₹15 ₹2.70 ₹17.70 ₹93.5 0.189 units
Government bonds 20% ₹10 ₹1.80 ₹11.80 ₹47.2 0.250 units
Total 100% ₹50 ₹9.00 ₹59.00

Things to keep in mind

  • NPS investments are held in Statement of Account (SoA) form, not in demat form. There is no separate Account Maintenance Charge (AMC) for NPS.
  • No charges apply for exits or withdrawals.

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