NPS Vatsalya

Features

• Announced by the Hon’ble Finance Minister in 2024 Budget as a 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
• 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
• Protection Against Uncertainty
• Flexibility in Future Financial Planning
• Encouragement for Long term Investment
• Benefits of Compound Interest
• Tax benefit not applicable on NPS Vatsalya contribution.
• Long term Financial Security
• Lower Contribution Amounts
• Teaching Financial Responsibility (Concept of Pension Planning)

​​​​​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

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