NPS Vatsalya Scheme - Apply Online, Eligibility and Benefits

In a new Budget 2024 speech, Finance Minister Nirmala Sitharaman suggested launching a new program called the NPS Vatsalya scheme. This program will be a National Pension Scheme (NPS) for minors to build a safe future for them. This scheme will enable parents to make donations to the NPS on their children’s behalf to safeguard their future. The NPS Vatsalya Scheme will assist in the building of a retirement fund for the Kids and their parents. This new program is meant to start early in providing financial security for children, which is an important step for India’s pension system.

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What is NPS Vatsalya Scheme?

The National Pension Scheme (NPS) Vatsalya Scheme, which is part of the Budget 2024 suggestion, allows parents and guardians to set up an NPS for their children. Parents and guardians can register an NPS account for their kids and make monthly or yearly payments until the kid turns 18 years old. There is no upper limit on the maximum investment amount; the minimum contribution is Rs. 1,000 annually. Parents who wish to build an adequate fund over time to safeguard their children’s financial future are the target market for NPS Vatsalya. The finance minister said in a press release that NPS Vatsalya will enable parents to invest in a pension account for their children’s future.

Important Factors of NPS Vatsalya Scheme

Name of Scheme	NPS Vatsalya Scheme
Launched By	Government on India
Date of Launch	SEPTEMBER 18, 2024
Beneficiary	Children citizens of India
Objective of Scheme	To provide a stable future to the kids
Nodal Department	Finance Department
State	India
Benefits	To give pension accounts to the parent to save money for the future of their kids
Mode of Application	Online/ Offline
Official Website	eNPS Portal

Objective of NPS Vatsalya Scheme

The primary objective of the NPS Vatsalya Scheme is to provide a stable and secure future for the children of India. Through the help of this scheme, parents can open accounts and make contributions to their children’s retirement funds. This program will be a National Pension Scheme (NPS) for minors, enabling parents to make contributions to the NPS on their children’s behalf. To safeguard their future and assist in the establishment of a retirement fund this scheme will the parents and their kids a lot. NPS Vatsalya’s audience consists of parents who want to gradually accumulate a sizable wealth to protect their kids’ financial future.

Eligibility Criteria

Indian citizens below 18 years
Non-resident Indian (NRI) and Overseas Citizenship of India (OCI) individuals below 18 years
Parents or guardians of a child can open the account on behalf of the minors

Required Documents

The following documents are required to open a NPS Vatsalya Scheme:

The Aadhaar card of the guardian
Date of birth proof of the minor
Signature of the guardian
Scanned copy of passport, in case of NRI subscribers
Scanned copy of foreign address proof, in case of OCI subscribers
Scanned copy of bank proof, in case of NRI or OCI subscribers

Silent Features

Saving of Money: Due to the option to transfer the account to a conventional NPS scheme upon turning 18, the NPS Vatsalya Scheme will encourage children to save money. As a result, they are able to independently maintain and add to it.

Flexible employment and Account changes: A person can move employment without having any negative effects on their NPS account thanks to the portability provided by the NPS plan. Therefore, when the child reaches majority, an NPS Vatsalya account can be changed to an NPS account, which can be maintained for the child’s lifetime and create a solid retirement corpus.

Good for Future savings from a small age: Since the NPS Vatsalya account allows contributions to start while the child is still a minor, it’s a good alternative for retirement savings. At the time of the child’s retirement, a sizable sum will have been saved.

Contribution Amount and Contributor

The minimum contribution is Rs.1,000 per year and there is no limit on the maximum contribution.
The parent or Guardian who is working can be the main contributor for the pension Account of the child.

Maturity Period

The NPS Vatsalya account matures when the kid reaches the age of 18.
The NPS Account can be transformed into a conventional NPS account that the child can handle on their own once they reach the age of majority (18 years).
However, the minor subscriber needs to complete a new KYC within three months of being eighteen.
The NPS Vatsalya amount’s accrued contribution amount will be moved to the regular NPS account.

Type of Investment

The investment choices, according to the Central Bank of India, are:

Default Choice: Moderate Life Cycle Fund – LC-50 (50 percent equity)
Auto Choice: Guardian can choose Life Cycle Fund – Aggressive – LC-75 (75 percent equity), Moderate LC-50 (50 percent equity), or Conservative LC-25 (25 percent equity).
Active Choice: Guardian actively decides the allocation of funds across equity (up to 75 percent), corporate debt (up to 100 percent), government securities (up to 100 percent), and alternate assets (up to five percent).

Mode of Withdrawal

There will be a partial withdrawal option available three years after the NPS Vatsalya account is opened.
On the SBI Pension Fund website, it states that up to 25% of the corpus may be used in part for PFRDA-specified purposes including education, the treatment of specific diseases, disability exceeding 75%, etc.
According to the SBI Pension Funds website, a subscriber may make three partial withdrawal requests before turning eighteen.

NPS Vatsalya Scheme Apply Online

To register an online account for the NPS Vatsalya Scheme, follow these steps:

Step 1: Go to the webpage for eNPS Portal.

Step 2: Under the “NPS Vatsalya (Minors)” menu, scroll down and select the “Register Now” option.

Step 3: Click “Begin Registration” after entering the guardian’s email address, PAN number, and date of birth.

Step 4: Enter the OTP that was sent to the guardian’s email address and mobile number.

Step 5: The acknowledgment number will appear on the screen after the OTP has been validated. Select “Continue.”

Step 6: Upload the necessary files, enter the minor’s and guardian’s information, and press “Confirm.”

Step 7: Send in your first RS 1,000 donation.

Step 8: An NPS Vatsalya account will be formed in the name of and the PRAN will be generated.

Login for NPS Vatsalya Scheme

Step 1: Go to the webpage for eNPS.

Step 2: on the Homepage of the website look on the extreme right side and you will find a ‘Login’ option.

Step 3: Select the Login Option that you want to do ‘subscriber’ or ‘entity’. Then click on the Type of Scheme you want to log in to. Such as ‘NPS’

Step 4: after that, you will be redirected to another page. Then fill in all your ‘required information’

Step 5: then click on submit’ and your profile will be Logged in.

Contact Details

Address: Protean e-Gov Technologies Limited. 1st Floor, Times Tower, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013
Tel -(022) 2499 3499
Toll-Free Number for Registered Subscriber
For NPS Subscriber – 1800 2100 080
For APY Subscriber – 1800 889 1030

FAQS

What is NPS Vatsalya scheme?

The National Pension Scheme (NPS) Vatsalya Scheme, which is part of the Budget 2024 suggestion, allows parents and guardians to set up an NPS for their children

What are the benefits of this scheme?

This scheme will enable parents to make donations to the NPS on their children’s behalf to safeguard their future.

Who is eligible for the NPS Vatsalya scheme?

This program will be a National Pension Scheme (NPS) for minors to build safe future for them.

Who announced this scheme?

In a new Budget 2024 speech, Finance Minister Nirmala Sitharaman suggested launching a new program called the NPS Vatsalya scheme.

When was this scheme announced?

The NPS Vatsalya Scheme on September 18, 2024.

Who can invest in this scheme?

The Parents and the guardians of the children who are working in govt or non govt sectors.