The NPS Vatsalya Scheme 2025 is a progressive initiative of the Government of India that helps individuals make long-term savings on their behalf of minors. This plan allows parents and guardians to invest in the behalf of children, and establish a culture of strategic planning of financial resources early in life. With an account opened under this plan, the parents can invest in the retirement of this child, and this will guarantee security at an early age.
The scheme is open to any Indian citizen (including Non-Resident Indians or (NRIs)) with the account to be registered in the name of the minor. After registration, the child is awarded a Permanent Retirement Account Number (PRAN) card and then the retirement savings process commences.
Key Highlights of the NPS Vatsalya Scheme
| Feature | Details |
|---|---|
| Launched By | Government of India |
| Introduced By | Finance Minister Nirmala Sitharaman |
| Regulating Authority | Pension Fund Regulatory and Development Authority (PFRDA) |
| Objective | To encourage early retirement savings for minors, ensuring long-term financial security |
| Beneficiaries | Minors under 18 years with a valid PAN card |
| Contributors | Parents or legal guardians |
| Minimum Contribution | ₹1,000 per year |
| Maximum Contribution | No upper limit |
| Investment Options | Default (LC-50), Auto (LC-75, LC-50, LC-25), Active (Custom allocation) |
| Partial Withdrawal | Up to 25% after a 3-year lock-in for education, illness, or disability (max 3 withdrawals) |
| Exit Options | Corpus > ₹2.5 lakh: 80% annuity, 20% lump sum; ≤ ₹2.5 lakh: Full withdrawal |
| Availability | Nationwide (including NRIs) |
| Official Website | eNPS NSDL Portal |
Objectives of the NPS Vatsalya Scheme
- Encourage Early Savings – Facilitates long-term savings for minors, promoting financial discipline from a young age.
- Seamless Transition – Automatically converts to a regular NPS Tier-1 account once the child turns 18.
- Flexible Investment – Offers multiple investment choices, allowing guardians to tailor portfolios based on risk appetite.
- Financial Security – Ensures a structured retirement plan for children, reducing future financial burdens.
Eligibility Criteria
To avail the benefits of the scheme, applicants must meet the following criteria:
- The minor must be under 18 years of age and possess a valid PAN card.
- The account must be opened by a parent or legal guardian.
- KYC documents (proof of identity, address, and minor’s date of birth) must be submitted.
- Open to Indian residents and NRIs.
Documents Required
- Aadhaar Card (of the guardian)
- Minor’s Date of Birth Proof (birth certificate, school ID, etc.)
- Guardian’s Signature Proof
- PAN Card (for the minor)
- Bank Account Details
- Additional Documents for NRIs/OCIs:
- Scanned passport copy
- Foreign address proof
Investment Options Under NPS Vatsalya
- Default Option (LC-50)
- 50% Equity, 50% Debt – Balanced risk for steady growth.
- Auto Choice (Risk-based)
- Aggressive (LC-75) – 75% Equity, 25% Debt
- Moderate (LC-50) – 50% Equity, 50% Debt
- Conservative (LC-25) – 25% Equity, 75% Debt
- Active Choice (Custom Allocation)
- Equity (Max 75%)
- Corporate Debt (Max 100%)
- Government Securities (Max 100%)
- Alternative Investments (Max 5%)
Withdrawal Rules
- Partial Withdrawal: Up to 25% of contributions after 3 years (for education, medical emergencies, or disability).
- Full Withdrawal at Maturity (Age 18):
- If corpus exceeds ₹2.5 lakh, 80% goes into an annuity, and 20% is withdrawn as lump sum.
- If corpus is ≤ ₹2.5 lakh, the entire amount can be withdrawn.
- In Case of Death: The full corpus is transferred to the nominee/guardian.
How to Apply Online for NPS Vatsalya Scheme (2025)
- Visit the Official Portal – Go to eNPS NSDL.
- Click on “Register Now” under the NPS Vatsalya (Minors) section.
- Enter Details – Provide the minor’s PAN, date of birth, mobile number, and email ID.
- Fill the Application Form – Submit necessary details (name, address, etc.) and upload documents.
- Submit & Complete Registration – Verify details and finalise the application.
Login Process for Existing Subscribers
- Visit the NPS official website.
- Under “Subscriber Login”, enter your PRAN (User ID), password, and captcha.
- Click “Submit” to access your account.
Contact Details
For further assistance, reach out to:
- Protean e-Gov Technologies Limited
Address: 1st Floor, Times Tower, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai – 400013
Helpline: (022) 2499 3499 | Toll-Free (Subscribers): 1800 2100 080
Frequently Asked Questions (FAQs)
Q1. Who can open an NPS Vatsalya account?
Parents or legal guardians of minors (under 18) can open the account.
Q2. What is the minimum contribution?
₹1,000 per year (no maximum limit).
Q3. Can NRIs open an account?
Yes, NRIs can open accounts for their minor children.
Q4. What happens when the child turns 18?
The account converts into a regular NPS Tier-1 account.
Q5. Are withdrawals allowed before maturity?
Yes, up to 25% after 3 years for specific needs (education, medical emergencies).
This NPS Vatsalya Scheme 2025 is a visionary plan of ensuring financial security of the youths of India in future. Through its promotion of early investments, it enables parents to make a strong corpus out of the investments to take care of their children throughout their life, financial-wise. Enroll now and pay for a future of your child!
🔗 Official Website: https://enps.nsdl.com