NPS Vatsalya Scheme

NPS Vatsalya is a contributory saving cum long-term financial security scheme designed exclusively for minors for the purposes of enhancing financial literacy and financial planning and to encourage empowerment of children, emanating from the vision of "Viksit Bharat@2047"

NPS Vatsalya is open to all citizens of India who are under the age of eighteen years , including Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs).

a. Power of compounding along with financial security: Starting early allows money to grow significantly over time through compounding, creating a financial cushion for the future.

b. Financial discipline: Small, regular investments build a strong habit of saving and planning.

c. Empowerment of child: Early exposure to saving builds responsible financial behaviour for life.

d. Tax Efficient - Attractive tax benefits under the Income Tax Act, 2025. Details given in later part of the Annexure.

e. Optimum Returns - Provides market-linked returns based on pension funds’ performance.

f. Transparent - 24/7 online access to the account, with mandatory public disclosures ensuring transparency.

The account is opened by the parent/guardian in the name of the minor.
The minor is the sole beneficiary of the account.
A unique Permanent Retirement Account Number (PRAN) is issued in the minor's name.
The account is operated by the parent/guardian for the exclusive benefit of the minor until they reach the age of majority (18 years).

The NPS Vatsalya account can be opened through:

• Points of Presence (POPs) registered with PFRDA either online or in physical mode
• The online platform (eNPS) of NPS Trust.
• Any other electronic mode approved by PFRDA

The KYC norms applicable to the guardian must be in accordance with the standards stipulated by PFRDA.
In the case of a court-appointed legal guardian, a copy of the court order regarding the appointment of the Legal Guardian must be submitted along with the KYC documents.

For the minor, proof of date of birth is required. Acceptable documents include:
Birth certificate of the minor School leaving certificate / Matriculations issued by Higher Secondary Board of respective states, ICSE, CBSE, etc.
Passport of the minor
PAN of minor

In case of Indian Residents - The bank account details of the minor or a joint account with the minor are optional for opening the account but will be required at the time of partial withdrawal or exit before the age of 18.
For NRI/OCI, details of NRE or NRO account are mandatory.

Upon attainment of 18 years of age, the subscriber shall continue under NPS Vatsalya for a period of up to three years (till 21 years), unless the subscriber opts to exit or shift to NPS All Citizen Model or any other applicable model. Upon attainment of 18 years of age, the subscriber shall be required to complete fresh KYC, furnish nominee(s) details and any other stipulated details.

Yes, Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) under 18 years of age can join the scheme.

No, the guardian becomes the nominee under the scheme.

The guardian can only open one account for each minor/child.

Yes, a guardian who is an NPS subscriber can open an NPS Vatsalya account in the name of the minor.

The minimum contribution is Rs. 250 per annum, with no upper limit on the maximum contribution.
The initial contribution required for enrollment under the scheme is Rs. 250.

A subscriber can contribute through any of the following modes:
Physical mode: By visiting any registered service provider (PoP) and depositing a cheque/cash along with the NPS contribution slip.
Online mode:
o Online facility provided by PoPs.
o eNPS platform of NPS Trust.

o UPI apps, such as BHIM, PhonePe, GPay, etc., enabled under BBPS.

o Any other electronic mode approved by PFRDA

Following choices are required to be exercised at the time of opening the NPS Vatsalya account:

• Choice of CRA (Central Recordkeeping Agency): From the registered CRAs with PFRDA.
• Choice of Pension Fund (PF): From the registered PFs with PFRDA.

The performance of your NPS investments is available in the Statement of Transactions, which can be accessed online through the subscriber web login or mobile app. Periodic statements are sent by the CRA to the registered email ID of the subscriber, and a physical statement for the financial year is sent to the correspondence address of the subscriber, if opted.

Subscribers can access their Pension Account through:
Physical mode: By visiting their service provider (PoP).
Online mode: Using the login credentials provided by CRA in the Account Opening Kit.

. For the purpose of education of subscriber, treatment of specified illnesses, disability more than 75%, or the reasons as may be specified by PFRDA in the interest of the minor subscriber, the guardian shall be allowed to partially withdraw upto 25% of subscribers’ contribution excluding returns thereon after minimum 3 years from the date of opening of account. Subscribers/Guardians may take up to 2 partial withdrawals until the subscriber attains 18 years of age. After the subscriber turns 18, upon completion of the prescribed KYC requirements, two additional partial withdrawals are allowed during the period between 18 and 21 years of age. Such a facility shall be made available on a declaration basis.

The subscriber shall be allowed to exit only upon attainment of age of 18 years. Upon such exit, up to 80% of the accumulated corpus can be withdrawn as lump sum, and the balance is to be utilised for purchase of annuity. In case the accumulated corpus is less than Rs. 8 Lakh, the subscriber shall have the option to withdraw the entire accumulated pension wealth.

If no option of either exit or shift to NPS is chosen by the age 21, the account automatically shifts to NPS in a higher-equity scheme under Multiple Scheme Framework, under the same Pension Fund and thereafter terms and conditions of NPS shall apply. Withdrawals will only be allowed after KYC is completed.

In the case of the death of the minor subscriber, the entire accumulated corpus is to be paid to the guardian or nominee(s) or legal heir(s), as the case may be. The recipient shall also have the option to transfer the proceeds to their individual NPS account.

Subscriber grievances can be lodged through the Central Grievance Management System (CGMS) of the respective CRA, as notified under the PFRDA (Redressal of Subscriber Grievance) Regulations, 2015. Grievances can be lodged through the NPS Trust website. PFRDA has developed an integrated grievance management portal, Pension Sahayak - an AI-powered, unified grievance redressal system integrating multiple channels such as web, mobile, WhatsApp, and IVR, with multilingual support for seamless complaint handling.