InvestorQ : How can I save transaction costs on my NPS investment?
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How can I save transaction costs on my NPS investment?

Answer
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2 weeks ago
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The transaction cost that you could be able to save on different NPS transactions is not huge but also not nominal. You can open your NPS account either through a Point of Presence (POP) or directly through the Central Record Keeping Agency (CRA).

What are CRA and POP?

CRA is the agency that keeps a record of subscribers, processes their registration and withdrawal requests and other functions. It also generates regular account statements and issues the Permanent Retirement Account Number (PRAN) to subscribers after registration.

While POP is opened to provide all the related services under the NPS through its various branches. All you have to do is – visit a POP and they will open the account for you. Generally, almost all banks and post offices are POPs.

POP just works as an intermediary between the user and the CRA. Therefore, there is extra cost involved if you make transactions through POP. However, if you are not comfortable in making transactions online or do not possess knowledge of various securities, managing a portfolio, asset classes, etc. you should not think about saving the cost. In that case, you should open your account with POP as they will manage everything for you.
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