NPS Vatsalya (0-18 Years)

NPS Vatsalya (0-18 Years)

NPS Vatsalya is a pension scheme focused on minors and is designed for parents aiming to secure their children's future. 

Criteria

Details

Age

0 -18 Years

Nationality

Indian citizens, including NRIs

Account Type
  • Minor Account not mandatory
  • NRE / NRO Bank Account (solo or joint) of the minor in case the guardian is NRI.

Documents Needed
  • KYC of Guardian shall be carried out by submitting Proof of Identity and Address (Aadhaar, Driving License, Passport, Voter ID card, NREGA Job Card, National Population Register)
  • Date of Birth proof of the Minor (Birth certificate, School leaving certificate, Matriculation Certificate, PAN, Passport)


Features

Key features of NPS Vatsalya are as under:

Eligibility

  • Open to all Indian citizens, including NRI/OCI, below 18 years of age
  • Minor is the sole beneficiary
  • Account opened in the name of the minor and operated by the guardian


Contribution

  • Minimum initial and annual contribution: ₹250
  • Minimum subsequent contributions: ₹250
  • No maximum limit on contribution
  • Contributions can also be gifted by relatives and friends. 


Pension Fund Selection

  • Guardian can choose any one Pension Fund registered with PFRDA 


Partial Withdrawal Provisions

  • Allowed after completion of three years from account opening
  • Up to 25% of own contributions (excluding returns)
  • Permitted for education, medical treatment and specified disabilities
  • Allowed twice before 18 years and twice between 18-21 years, subject to conditions 


Upon Attaining Majority

  • Fresh KYC mandatory on attaining 18 years
  • Options available till 21 years:
  • Continue under NPS Vatsalya, or
  • Shift to NPS Tier I (All Citizen Model or any other applicable model), or Exit with:
    • Up to 80% as lump sum
    • Minimum 20% to be annuitised
    • Full withdrawal permitted if corpus is ₹8 lakh or less