NPS Vatsalya

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What is NPS Vatsalya?

NPS Vatsalya account provides your child with a head start on savings and offers valuable financial lessons from an early age. It instils the importance of financial planning and discipline, which can benefit the child throughout their life.
Emanating from the vision of "Viksit Bharat@2047" and to encourage empowerment of children.
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NPS Vatsalya account provides your child with a head start on savings and offers valuable financial lessons from an early age.
It instils the importance of financial planning and discipline, which can benefit the child throughout their life. Emanating from the vision of "Viksit Bharat@2047" and to encourage empowerment of children.
Read More
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Who can open a NPS Vatsalya account?

  • All the citizens of India, including OCIs (Overseas Citizens of India) and NRIs.
  • Minors below the age of 18 at the time of registration.
  • The subscribers must successfully comply with the KYC requirements.
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How to open the account?

  • Click here to fill in the application to open the account.
  • Upload KYC documents as prescribed and make the contribution
  • The account shall be operated by the guardian for the exclusive benefit of the minor until attainment of age of majority (18 years).
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Tax Benefits in NPS Vatsalya

  • Under the NPS Vatsalya scheme, parents/guardians can claim tax deductions up to ₹50,000 annually under Section 80CCD(1B)
  • Tax benefit is applicable under old tax regime.

Frequently Asked Questions on NPS Vatsalya account?

Here are some frequently asked questions about NPS Vatsalya account

NPS Vatsalya account opening FAQs

NPS Vatsalya is open to all citizens of India, OCI & NRI who are under the age of eighteen years. The account will be opened and operated by the guardian on behalf of the minor.

  • The account is opened by the natural or legal guardian in the name of the minor.
  • The minor is the sole beneficiary of the account.
  • A unique Permanent Retirement Account Number (PRAN) is issued in the minor's name.
  • The account is operated by the guardian for the exclusive benefit of the minor until they reach the age of majority (18 years).

For the minor, the proof of date of birth is required. Acceptable documents include:

  • Birth certificate of the minor
  • School leaving certificate / Matriculations issued by Higher Secondary Board
  • Passport of the minor
  • PAN

The account will continue to be operational and will be seamlessly transitioned into a NPS -Tier 1 Account under the All-Citizen Model.

  • Upon transitioning, the features, benefits, and exit norms of the NPS-Tier I for All Citizen Model will apply.
  • A fresh KYC of the subscriber must be carried out within three months of reaching majority. Contributions to the NPS Tier1 Account will be allowed after the submission of fresh KYC.

Accumulation under NPS Vatsalya

  • The minimum contribution is Rs 1000 per annum, with no upper limit on the maximum contribution.
  • The initial contribution required for enrolment under the scheme is Rs 1000.

If the minimum contribution is not received, the account is categorized as 'frozen' and will be activated upon contributing to the account. The NPS account will be closed only when a subscriber submits a request (physical or online) for exit from NPS to a service provider (PoP)

Exit from NPS Vatsalya

  • Partial withdrawals from your NPS Vatsalya account are allowed to address contingency situations. The reasons/conditions for partial withdrawal include:
    • Education of the minor subscriber
    • Treatment of specified illnesses of the minor subscriber
    • Disability of more than 75% of the minor subscriber
  • A maximum amount of up to 25% of contributions (excluding returns) can be partially withdrawn.
  • This facility is available on a declaration basis after a minimum of 3 years from the date of account opening.
  • The Partial withdrawal can be made maximum three times till subscriber attains 18 years of age.

  • The subscriber can exit on attainment of age of 18 years.
  • In case, the accumulated fund available in the account is equal to or less than a two lakh fifty thousand, the subscriber shall have option to withdraw the entire corpus
  • In case, the accumulated fund is more than a two lakh fifty thousand, at least eighty percentage of the corpus in the account must be utilized for purchase of annuity and remaining balance shall be paid in lump sum.
  • In the event of the minor subscriber's death, the entire accumulated corpus to be paid to the guardian.