The central government has launched a new pension scheme called “NPS Vatsalya“. This scheme is for minor children, with contributions from parents and guardians. Once the child reaches the age of majority, this plan will seamlessly convert to a regular NPS account. This plan will help secure the child’s financial future.
Under the NPS Vatsalya scheme, you can open an account with a minimum of ₹1,000. After this, the parent or guardian must deposit at least ₹1,000 annually until the child turns 18. Payments will begin once the child turns 18.
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What is NPS Vatsalya?
NPS Vatsalya is a contributory pension system under the National Pension System (NPS). This scheme is designed specifically for minors. NPS scheme allows parents to open accounts for their children and contribute towards their retirement savings.
Who can open an account
All parents who are citizens of India can open an account for their children under the NPS Vatsalya Scheme. Deposits under NPS Vatsalya earn compound interest, helping them secure their children’s future. NPS Vatsalya Scheme allows parents to arrange funds for the future of their children.
Recuired Documents for NPS Vatsalya Scheme
- Identity proof for the guardian (Aadhaar card, PAN card, passport or driving license, etc.)
- Address proof: (Any official document confirming current address)
- Age proof for the minor
- Identity proof for minors
- Mobile number
- Email ID
- Photograph
How to apply for the scheme
Step 1: Visit the NPS Trust Website https://npstrust.org.in
Step 2: On the home page click, “Open NPS Vatsalya”
Step 3: Subscriber will be directed to the page where the choice of any of the three CRAs can be made.
Step 4: On selecting the CRA, subscriber needs to enter the basic details of the Minor and the Guardian and complete OTP authentication.
Step 5: KYC details of the guardian such as Name, Date of Birth, Gender, Address, and Photo will be fetched from UIDAI database.
Step 6: FATCA details and declaration to be entered and the choice of Investment Option should be made.
Step 7: Details to be verified through OTP authentication through email and mobile number.
Step 8: Initial contribution amount of Min Rs 1000/- to be made
Step 9: PRAN will be generated after successful payment.
Children who deposit money in the NPS-Vatsalya scheme can withdraw funds after they turn 18. Withdrawals are only available three times until the child turns 18. The NPS Vatsalya scheme is a pension plan for children.