NPS Vatsalya Scheme
Finance Minister Nirmala Sitaraman introduced the NPS Vatsalya Scheme to help children in need across the country.
Introduced in the Union Budget 2024-25, NPS Vatsalya is a new initiative under the National Pension System designed for long-term investments by parents and guardians on behalf of their minor children.
NPS Vatsalya Mission
- Accessible to Indian citizens and NRIs, with accounts opened by legal guardians in the child’s name.
- For NRI and OCI subscribers, contributions can be made from their NRE (Non-Resident External) and NRO (Non-Resident Ordinary) accounts.
- After the minor reaches 18 years of age, the NPS Vatsalya account is converted into a regular NPS account.
- Minimum annual contribution of ₹1,000, with no upper limit
- Investment choices like Default (50% equity), Auto (25-75% equity), and Active (up to 75% equity)
- Partial withdrawals allowed after 3 years for education, health, and disability up to 25% of corpus
- Account converts to regular NPS at 18, with option to continue or withdraw (20% lump sum, 80% annuity if corpus >₹2.5 lakh).
How to open NPS Vatsalya’s online platform (eNPS)?
To open an NPS Vatsalya account online, follow these steps:
- Visit the eNPS Portal: Go to the official eNPS website, which will host the NPS Vatsalya scheme.
- Select the NPS Vatsalya Option: Look for the option to apply for the NPS Vatsalya scheme specifically designed for minors.
- Complete Registration: Fill out the necessary details, including the minor’s information and guardian’s KYC details.
- Upload Documents: Provide required documents such as proof of identity and address for the guardian and proof of age for the minor.
- Make Initial Contribution: Ensure a minimum annual contribution of ₹1,000 is made during registration.
- Receive PRAN Card: After successful registration, a Permanent Retirement Account Number (PRAN) card will be issued for the minor subscriber.
Required Documents for NPS Vatsalya Scheme
- Proof of Identity for Guardian: This can include an Aadhaar Card, PAN Card, Passport, or Driving Licence.
- Proof of Address for Guardian: Any official document that verifies the current address.
- Proof of Age for Minor: A Birth Certificate or any government-issued document that confirms the date of birth of the child.
- Identity Proof for Minor: An Aadhaar Card is recommended if available.
- Contact Information: A valid mobile number and email ID for registration and communication.
- Photographs: Recent passport-size photographs of the guardian.