NPS Vatsalya Scheme

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Benefits
Features
Eligibility Criteria
Document Required
Fees & Charges
Terms & Conditions

NPS Vatsalya Scheme : Benefits

- Opening a NPS Vatsalya account provides the child with a head start on saving for retirement and offers valuable financial lessons from an early age. It instills the importance of financial planning and discipline, which can benefit the child throughout their life.

NPS Vatsalya Scheme : Features

NPS Vatsalya is a Contributory Pension Scheme regulated and administered by Pension Fund Regulatory and Development Authority (PFRDA) designed specifically for all Indian minor citizens till the age of 18 years.
Its objective is to create a pensioned society and encourage the empowerment of children by inculcating the habit of saving for retirement from an early age.
PRAN is issued in the name of minor.

NPS Vatsalya Scheme : Eligibility Criteria

Eligibility:

All minor citizens (age till 18 years) are eligible.

Operation:

Account opened in the name of minor and operated by Guardian.
Minor to be sole beneficiary.

Where to open account:

The NPS Vatsalya account can be opened at our Bank Branches or at the online platform (eNPS) of NPS Trust.

NPS Vatsalya Scheme : Document Required

Date of Birth proof of the Minor (Birth certificate, School leaving certificate, Matriculation Certificate, PAN, Passport)
KYC of the 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)
Permanent Account Number (PAN) of the Guardian or Form 60 declaration (Rule 114B).
NRE / NRO Bank Account (solo or joint) of the minor in case guardian is NRI / OCI.

NPS Vatsalya Scheme : Fees & Charges

The charges and fee to be levied on the account at any time shall be same as the charges under NPS- All Citizen Model as stipulated by PFRDA from time to time.

NPS Vatsalya Scheme : Terms & Conditions

Contribution:

Account Opening contribution: Min Rs. 1,000 /- and Max no limit.
Subsequent contribution: Min Rs. 1,000 /- p.a. and Max no limit.

Pension Fund Selection:

Guardian can choose any one of the Pension Fund registered with PFRDA.

Investment Choice:

Default Choice: Moderate Life Cycle Fund -LC-50(50% equity).
Auto Choice: Guardian can choose Lifecycle Fund - Aggressive-LC-75(75% equity), Moderate LC-50 (50% equity) or Conservative-LC-25 (25% equity) as per his/her risk appetite.
Active Choice: Guardian actively decides allocation of funds across Equity (upto 75%), Corporate Debt (upto 100%), Government Securities (upto 100%) and Alternate Asset (5%).

Upon attainment of age of 18 years:

Seamless shift to NPS Tier – I (All Citizen)
Fresh KYC of the minor within three months from date of attainting 18 years.
Upon transitioning, the features, benefits, and exit norms of the NPS-Tier I for All Citizen Model will apply.

Exit and withdrawal from the account:

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 under the regulations, 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, for maximum three times till the subscriber attains 18 years of age. Such facility shall be made available on declaration basis.
In the case of death of the minor subscriber, the entire accumulated pension wealth to be paid to the guardian.
In case of the death of the guardian registered under the account, another guardian to be registered on behalf of minor subscriber by submitting the KYC documents as specified by the PFRDA from time to time.
In case of death of both the parents, the legally appointed guardian may continue the account with or without making contributions to the account, and upon attainment of 18 years of age by the subscriber, the subscriber shall have an option to continue or exit from the scheme.
The subscriber shall be allowed to exit only upon attainment of age of 18 years. On such exit, at least eighty percentage of accumulated pension wealth available in the account shall be utilized for purchase of annuity and remaining balance shall be paid in lump sum. In case, the accumulated pension wealth available in the account is equal to or less than a two lakh fifty thousand, or purchase of annuity is not available from empanelled Annuity Service Providers (‘ASPs’), the subscriber shall have option to withdraw the entire accumulated pension wealth.
The exits and withdrawals under the scheme shall be governed by the provisions of the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pensions System) Regulations, 2015 and amendments thereof.