New Delhi: In recent years, the Indian government has introduced several schemes for the benefit of the common people. Every parent wants to secure the future of their children and in this regard, the NPS Vatsalya Scheme can play a very important role.
The National Pension System Vatsalya (NPS Vatsalya) scheme was launched by Union Finance Minister Nirmala Sitharaman. It was announced in Budget 2024-2025, and this innovative scheme has been designed for minors. The Pension Fund Regulatory Authority of India (PFRDA) regulates this scheme. NPS Vatsalya aims to make the future of minors secure.
How does the National Pension System Vatsalya work?
Parents can invest a minimum of Rs 1,000 every month and there is no upper limit to the contribution under the National Pension System Vatsalya. The parents will operate the account until the child becomes 18 years old. After that, the account will the transitioned in the name of the child.
Once the child becomes an adult, the account can be changed into a regular NPS account or any other non-NPS scheme. Through the power of compounding, NPS Vatsalya promises a substantial wealth accumulation. Here, it must be noted that the NPS Vatsalya has no interest rate as of now.
Who is eligible for the NPS Vatsalya scheme?
All minor citizens are eligible to have an account in the NPS Vatsalya scheme till they turn 18 years old. It must be noted that the parent or a legal guardian can create the account on behalf of the minor child.
How to create the account?
One can create the account through registered Points of Presence (PoPs) with the PFRDA, including major banks, pension funds and India Post. One can set up the account in both online and offline modes. To open an account online, one can visit the NPS Trust’s eNPS platform.
Documents needed to open an NPS Vatsalya account
- The minor’s proof of Date of Birth like a birth certificate, Matriculation Certificate, School Leaving Certificate, Passport or PAN.
- The guardian has to submit proof of identity and address which can be an Aadhaar Card, Passport, Driving License, Voter ID card, National Population Register documents or NREGA Job Card.
- The guardian’s Permanent Account Number is needed. Also, if the guardian is an NRI or OCI, then the minor’s NRE/NRO Bank Account is needed.
