The newly launched NPS Vatsalya Pension Scheme offers a strategic way for parents to secure their children’s financial future through a specialized pension account . This scheme leverages the benefits of long-term investments and compounding to build wealth for minors, operated by a guardian.
# How to Open an NPS Vatsalya Account
Opening Locations and Platforms
In-Person: Accounts can be opened at Points of Presence (POPs) such as major banks, India Post , and Pension Funds.
Online: You can also set up an account via the e-NPS platform.
# Required Documents
For the Guardian
For the Minor
# Contribution Details
Initial and Subsequent Contributions
# Investment Choices
Default Option
Moderate Life Cycle Fund - LC-50: 50% equity exposure.
Auto Choice
Active Choice
# Withdrawal and Exit Conditions
Partial Withdrawals
Up to 25% of the contribution allowed after a 3-year lock-in period for education, specified illnesses, or disabilities. This can be done up to three times.
# Transition at Age 18
Death Benefits
In case of the minor’s death, the entire corpus will be returned to the guardian.
The NPS Vatsalya Pension Scheme offers a robust option for securing financial growth for children through flexible contributions, diverse investment choices, and structured withdrawal options.
# How to Open an NPS Vatsalya Account
Opening Locations and Platforms
In-Person: Accounts can be opened at Points of Presence (POPs) such as major banks, India Post , and Pension Funds.
Online: You can also set up an account via the e-NPS platform.
# Required Documents
For the Guardian
- Identity Proof: Aadhaar, Driving License, Passport , Voter ID, NREGA Job Card, or National Population Register document.
- Address Proof: Same as identity proof.
For the Minor
- Proof of Birth: Birth Certificate, School Leaving Certificate, Matriculation Certificate, PAN, or Passport.
- Bank Account: NRE/NRO Bank Account (solo or joint) if the guardian is an NRI.
# Contribution Details
Initial and Subsequent Contributions
- Opening Contribution: Minimum of ₹1,000, with no upper limit.
- Annual Contributions: Minimum of ₹1,000 per year, with no upper limit.
# Investment Choices
Default Option
Moderate Life Cycle Fund - LC-50: 50% equity exposure.
Auto Choice
- Aggressive Fund - LC-75: 75% equity exposure.
- Moderate Fund - LC-50: 50% equity exposure.
- Conservative Fund - LC-25: 25% equity exposure.
Active Choice
- Equity: Up to 75%.
- Corporate Debt: Up to 100%.
- Government Securities: Up to 100%.
- Alternate Assets: Up to 5%.
# Withdrawal and Exit Conditions
Partial Withdrawals
Up to 25% of the contribution allowed after a 3-year lock-in period for education, specified illnesses, or disabilities. This can be done up to three times.
# Transition at Age 18
- If Corpus > ₹2.5 lakh: 80% of the corpus must be used to purchase an annuity, while 20% can be withdrawn as a lump sum.
- If Corpus ≤ ₹2.5 lakh: The entire corpus can be withdrawn as a lump sum.
Death Benefits
In case of the minor’s death, the entire corpus will be returned to the guardian.
The NPS Vatsalya Pension Scheme offers a robust option for securing financial growth for children through flexible contributions, diverse investment choices, and structured withdrawal options.
