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
- Flexible Choices: Tailor investments to suit your risk profile
2
Who Can Invest?
- Parents or guardians of Indian minor citizen
- NRIs and OCIs eligible
3
Contribution Details
| Type | Minimum Amount | Maximum Limit |
|---|---|---|
| Account Opening | ₹1,000 | No limit |
| Annual Contribution | ₹1,000 | No limit |
4
Investment Choice
The guardian can select investment
options as per their risk appetite.
| AUTO CHOICE (Life Cycle Fund) | ACTIVE CHOICE |
|---|---|
| LC-75: Aggressive (75% equity) | Equity: Up to 75% |
| LC-50: Moderate (50% equity) – Default | Corporate Bonds / Government Securities: Up to 100% |
| LC-25: Conservative (25% equity) | Alternate Assets: Up to 5% |
Required Documents
5
What You Need to Apply
| Requirements | Documents |
|---|---|
| Child’s Date of Birth Proof | Birth Certificate, School Certificate, PAN, Passport, etc. |
| Guardian’s KYC | Aadhaar, Voter ID, Passport, etc. |
| Guardian’s PAN | PAN Card or Form 60 |
| Minor’s Bank Account | NRE/NRO Account in Minor’s Name (mandatory for NRI/OCI) |
Pension Fund Selection
6
What Happens at Age 18?
- Account converts to a regular NPS Tier I under the All Citizen Model
- Fresh KYC to be submitted within 3 months
- All standard NPS features apply
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.
