NPS Vatsalya
NPS Vatsalya
A unique initiative introduced in Union Budget 2024, NPS Vatsalya allows parents and guardians (including NRIs and OCIs) to open a National Pension System (NPS) account for their minor children. It promotes early saving habits, helping create a strong retirement corpus over time.
1
Why Choose NPS Vatsalya?
- Early Start: More time for compounding may lead to better returns
- Market-Linked Growth: Potentially better than traditional plans
- Auto-Upgrade at 18: Seamlessly becomes a regular NPS Tier I account
2
Who Can Invest?
- Contribution can be made by parent, guardian, or subscriber
- Relatives and friends can also gift money to the NPS Vatsalya account
3
Contributions to the Account
| Type | Minimum Amount | Maximum Limit |
|---|---|---|
| Account Opening | ₹250 | No limit |
| Annual Contribution | ₹250 | No limit |
4
NPS Vatsalya investment norms
| Asset Type | Limit |
|---|---|
| Government Securities | 15 – 20% |
| Debt Instruments | 10 – 30% |
| Short-term Debt (Money Market) | Up to 10% |
| Equity Investments | 50 – 75% |
*The money market limit will apply once the scheme corpus exceeds ₹5 crore
Required Documents
5
What You Need to Apply
| Child’s Date of Birth Proof | Birth Certificate / School Leaving Certificate / (Matriculation) Certificate / PAN / Passport |
| Parent / Guardian KYC | Aadhaar / Driving License / Passport / Voter ID / NREGA Job Card / NPR Document |
| Parent / Guardian PAN | PAN Card or Form 60 (if PAN not available) |
| Bank Account (For NRI/OCI Guardian) | Minor's NRE or NRO Bank Account (Single or Joint) |
6
NPS Vatsalya exit norms
- After 18, subscriber can continue for up to 3 years or shift
to regular NPS or any other applicable NPS model - Fresh KYC and nominee details are required
- No withdrawal allowed until KYC is done
(investment keeps earning returns)
After KYC, subscriber can:
- Shift to NPS or any other applicable NPS model
- Withdraw up to 80% lump sum (rest in annuity)
- Withdraw full amount if corpus is below ₹8 lakh
- If no choice is made by age 21, account shifts to high-risk Multiple Scheme Framework (MSF) option automatically
Partial Withdrawal
- Partial withdrawal allowed for education, serious illness,
or disability (75% or more) of the minor subscriber - Allowed after 3 years of account opening
- Up to 25% of contributions can be withdrawn
- Maximum 2 withdrawals till age 18
- After 18 and KYC, 2 more withdrawals allowed till age 21
7
Death of subscriber and Guardian
- If subscriber dies, full amount is paid to guardian, nominee, or legal heir
- Receiver can transfer money to their own NPS account
- If guardian dies, a new guardian must be registered with KYC
- If both parents die, legal guardian can continue the account
Get started with just a click!
How to Open an NPS Vatsalya Account
Here is the quickest way to open an NPS Vatsalya account. You can choose any of the following CRAs. Please click on the below link of your choice.
It’s available through various PoPs registered with PFRDA. Click here to know more NPS Vatsalya.
