NPS Vatsalya Scheme Apply Online process starts at enps.nsdl.com, check how to open NPS Vatsalya Account for minors by making self registration. Finance Minister Nirmala Sitharaman has introduced NPS Vatsalya Yojana on 23rd July 2024 during her budget speech. NPS Vatsalya is a modified version of the National Pension System (NPS) specifically designed for minors by the central government. It allows parents and guardians to start pension planning for their children by making contributions that accumulate until the child reaches 18 years of age.
The introduction of NPS Vatsalya expands the NPS to cover minors, providing families with a fresh avenue to plan for their children’s financial security and ensuring a seamless transition into adult pension plans. In this article, we will tell you how to apply online for NPS vatsalya scheme, what is the eligibility criteria to open NPS Vatsalya Account, what are its benefits and other aspects regarding the scheme.
At the homepage, reach to “National Pension System” section present in the main menu and click “NPS Vatsalya (Minors) Registration” link.
NPS Vatsalya (Minors) Registration Link
Then it will scroll down to NPS Vatsalya scheme description section where you can click “Register Now” button.
Accordingly, the NPS Vatsalya Scheme online registration form 2024 will appear as shown below:-
NPS Vatsalya Scheme Online Registration Form
Enter date of birth, PAN, mobile number, email ID and click “Begin Registration” tab.
Verify the OTP sent to the guardian’s mobile and email.
Fill in the required information for both the child and the guardian, and upload the necessary documents.
Make the initial deposit of Rs. 1,000.
Once done, the PRAN will be generated, and the NPS Vatsalya account will be opened in the child’s name.
Who is Eligible to Open NPS Vatsalya Account?
Subscriber below 18 years of age
Easy and multiple registration options (Aadhaar, Digilocker etc.)
Applicable for NRI & OCI Subscribers also
Contributions to come from NRE and NRO A/c. (Applicable only for NRI/OCI Subscribers)
List of Documents Required for NPS Vatsalya Scheme
If registering with either Aadhar or Aadhaar Offline XML or Virtual ID (aadhar) or driving license using digilocker or PAN using CKYC Details, then following list of documents are required:-
Date of Birth Proof of Minor
Guardian Signature
Scanned Copy of Passport (Applicable only for NRI Subscribers)
Scanned copy of Foreign Address Proof (Applicable only for OCI Subscribers)
Scanned copy of Bank Proof (Applicable only for NRI/OCI Subscribers)
What is NPS Vatsalya Yojana?
The new NPS Vatsalya scheme allows parents and guardians to start NPS for their children. Parents can open NPS Vatsalya Account for their children and contribute a certain amount every month or year till the child reaches 18 years. Once the child reaches the age of 18 years, then NPS Vatsalya scheme account would be converted into a regular NPS account, which can be managed by the child independently. The accrued contribution amount in the NPS Vatsalya Yojana account will be transferred to the standard NPS account when the child become major.
The NPS Vatsalya scheme will be a variant of the existing NPS, tailored explicitly for young individuals. This scheme allows parents to open accounts for their children and contribute towards their retirement savings. The NPS scheme introduced by the Central Government provides pension income to individuals to support their retirement needs. Thus, the NPS Vatsalya scheme is one of the finest retirement options, guaranteeing the child’s financial security.
What are the Benefits of NPS Vatsalya Scheme?
Eligibility – Parents or guardians can open the account for their minor children, who will be the sole beneficiaries.
Account Management – The account is operated by the guardian until the child turns 18.
Unique Pension Retirement Account Number (PRAN) – The Central Recordkeeping Agency (CRA) will issue a PRAN for the child.
Transition to NPS-Tier 1 – Once the child turns 18, the account automatically transitions to the NPS-Tier 1 under the All Citizen Model.
KYC Requirements – A new KYC process must be completed within three months of the child reaching adulthood.
Minimum Contribution – A minimum annual contribution of Rs. 1,000 is required, with no upper limit on contributions.
Withdrawal Options – The scheme allows for partial withdrawals and exit options.
Parents can open an NPS Vatsalya account for their children at several major banks. These include:-
ICICI Bank,
State Bank of India,
Axis Bank,
Canara Bank,
Central Bank of India,
Indian Overseas Bank, and
Bank of Maharashtra.
These banks provide a simple way for parents to invest in their children’s retirement savings through the National Pension System (NPS).
NPS Vatsalya Scheme in Union Budget 2024-25
Finance Minister presented Union Budget 2024-25 on 23rd July 2024. While delivering her budget speech, FM said “We are introducing NPS Vatsalya Yojana under the National Pension Scheme (NPS) for minors. The scheme enables parents and guardians to initiate pension planning for their children by making contributions that accumulate until the child reaches 18 years old. At that juncture, the accrued amount will be transferred to the standard NPS already established”.
While unveiling the new plan that would ensure long-term financial security for children, the Finance Minister said, “On attaining the age of majority, the plan can be converted seamlessly into a non-NPS plan”.
