A saving-cum-pension scheme regulated and administered by the PFRDA (Pension Fund Regulatory and Development Authority) of Govt. of India. Opening an NPS account for your child gives them an early advantage in saving for retirement and teaches essential financial skills. With just Rs. 1000 annually, you can introduce them to investing and educate them on money management earning, saving, and spending wisely.
Eligibility for Vatsalya Scheme
All minor Indian citizens (age till 18 years) are eligible.
Operation in Vatsalya Scheme
Account opened in the name of minor and operated by Guardian.
Minor to be sole beneficiary.
Where to open account of Vatsalya Scheme
The NPS Vatsalya account can be opened through Point of Presence (POPs) registered with PFRDA either online or physical mode, which include major banks, India Post, Pension Fund etc.
The online platform (eNPS) of NPS Trust
Documents required for Vatsalya Scheme
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.
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
