Features

NPS Vatsalya


NPS Vatsalya – Secure your child’s future.

Now open an NPS account for your minor child and secure their future.

  • Announced by the Hon’ble Finance Minister in 2024 Budget

  • Contributory Pension Scheme regulated and administered by the PFRDA

  • The motive of the scheme is to encourage empowerment of children with an ultimate objective of creating a pensioned society

  • All minor Citizens up to 18 years of age can join the scheme

  • Minimum Contribution for account opening Rs 1000

Features –

  • Minor to be sole beneficiary

  • Parents Guardians can open account and make contributions in the name of minors

  • Seamless conversion into regular NPS Account on completion of 18 years of age

  • Choice of Fund Manager and asset allocation

  • No limit on maximum contribution

  • Tax benefit not applicable on NPS Vatsalya contribution.

Why opt for NPS Vatsalya –

  • Long term Financial Security

  • Lower Contribution Amounts

  • Teaching Financial Responsibility (Concept of Pension Planning)

  • Protection Against Uncertainty

  • Flexibility in Future Financial Planning

  • Encouragement for Long term Investment

  • Benefits of Compound Interest

How to open NPs Vatsalya –

Click on ‘Apply Online’ > select your preferred CRA > Proceed to fill details.

(CAMS and K-fin Technology will share separate pop up basis applicant Date of Birth to fill Minor’s details. For Protean, please select ‘Applicant type – NPS Vatsalya’)
​​​​​​​

NPS Vatsalya – Continuation and Partial Withdrawal

Upon Attainment of age of 18 Years –

  • Seamless conversion into regular NPS Tier 1 Account (All Citizen)

  • Fresh KYC of minor within three months

  • Upon transitioning, the features, benefits, and exit norms of the NPS Tier I for All Citizen Model will apply

Partial Withdrawal –

  • Up to 25% of contribution on declaration basis

  • After lock in period of 3 years

  • Three times till subscriber attains 18 years of age

  • For below mentioned reasons -

    • Education

    • Treatment of specified illnesses

    • Disability of more than 75%

    • Reasons specified by the PFRDA


NPS Vatsalya – Exit

Exit upon attainment of 18 years –

  • If Accumulated Corpus >= 2.5 Lakh, Min 80% Annuity, up to 20% Lump Sum

  • If Accumulated Corpus < 2.5 Lakh, upto 100% Lump Sum

Exit on account of Death –

  • Death of the minor Entire corpus returned to the Guardian

  • Death of the Guardian Another Guardian to be registered through fresh KYC

  • Death of both parents Legally appointed guardian can continue without making contributions until subscribers attains 18 years of age


How to open NPS account

Corporate Benefit