The central government has launched a new pension program called NPS Vatsalya Scheme. This scheme is for minor children, with contributions from parents and guardians. When the child attains majority, the scheme automatically converts to a regular NPS account. The NPS is regulated by the Vatsalya Pension Fund Regulatory and Development Authority (PFRDA).
The NPS Vatsalya Yojana was launched specifically to encourage child savings. Parents can invest and financially secure their children’s future. Investments under the NPS Vatsalya Yojana can begin with just ₹1,000. Payments will begin when the child turns 18.
NPS Vatsalya Scheme
The NPS Vatsalya Scheme is a voluntary pension scheme launched by the Public Sector Undertakings (PFRDA). Designed specifically for minors, this scheme allows parents to open accounts for their children. Parents/guardians can save money in their child’s name.
The minimum contribution is ₹1,000 per year, and there’s no maximum contribution limit. Investing in this scheme can build a substantial corpus by the time your child turns 18.
Who can open an account
All Indian citizens want to invest for their children, but lack of funds prevents them from doing so. In response, the Central Government launched the NPS Vatsalya Yojana. All parents can open an NPS account for their child. This scheme is for Indian citizens who want to secure their children’s financial future.
Udyam Portal Registration, Eligibility, Download Certificate
Recuired Documents for NPS Vatsalya Scheme
- Guardian Aadhaar card, PAN card, passport for Identity proof
- Address proof
- Age proof for the minor
- Identity proof for minors
- Mobile number
- Email ID
- Photograph
How to Open an NPS Vatsalya Account Online
Step 1: Visit the NPS official website https://npstrust.org.in
Step 2: On the homepage you get the option of “Open NPS Vatsalya”.
Step 3: Now the account opener has to select one of the three CRAs.
Step 4: After selecting the CRA, basic details of the guardian have to be entered.
Step 5: Now you will have to complete the KYC process from your bank, for this it is necessary to have Aadhar card.
Step 6: After registration you will be given a Permanent Retirement Account Number (PRAN).
Withdrawal and Exit Rules of NPS Vatsalya
Withdrawals under the NPS Vatsalya scheme are possible even before the child turns 18. However, withdrawals are only allowed three times until the child reaches 18 years of age.
- Withdrawals are available after three years of joining NPS.
- Guardians can withdraw only 25% of the deposited amount.
- Withdrawals are allowed only three times until the child turns 18.
When the child turns 18, the NPS Vatsalya Yojana account is converted into a regular NPS account. To maintain the account, holders need to make an annual investment of ₹1,000 per year. Interest is paid at an expected rate of return of 10% over the investment period.
My name is Neha Arya and I’m the founder of Latestsarkariyojana. On this blog, I share information about government schemes, online forms, important documents, government jobs, and digital services. My goal is to raise awareness and help people access the benefits of government schemes.