NPS Vatsalya Scheme 2024 – Minor Child Pension Plan Guide

The NPS Vatsalya Scheme, announced in the Union Budget 2024–25, is a special pension initiative that allows parents and guardians to open a National Pension System (NPS) account for minors. The account remains active until the child turns 18 and then seamlessly converts into a regular NPS Tier-I account.

Parents can start investing with a minimum contribution of ₹1,000 per year with no upper investment limit. Contributions can be made monthly or annually. The scheme helps children build long-term retirement savings while developing financial discipline from an early age.

Investment Options

• Default Choice: Moderate Lifecycle Fund (LC-50) with 50% equity exposure.

• Auto Choice:

  • Aggressive (LC-75) – 75% equity

  • Moderate (LC-50) – 50% equity

  • Conservative (LC-25) – 25% equity

• Active Choice: Parents can choose how funds are allocated across equity, government bonds, corporate debt, and alternate assets.

Contributions

• Minimum Opening Deposit: ₹1,000

• Minimum Annual Contribution: ₹1,000

• Maximum Contribution: No limit

At 18 Years of Age

Once the child turns 18, the account is automatically converted into a regular NPS Tier-I Account after completing fresh KYC within three months.

Withdrawals & Exit Rules

• Up to 25% partial withdrawal is allowed after 3 years for education, medical treatment, disability (75%+), or as permitted by PFRDA.

• In case of the death of the minor, the entire pension corpus is paid to the guardian.

• Upon exit at 18 years, at least 80% of the amount must be used to purchase annuity, while the remaining can be withdrawn as a lump sum.

• If total corpus is ₹2.5 lakh or less, the full amount can be withdrawn.

Eligibility

• The subscriber must be an Indian citizen below 18 years.

• The account must be managed by a parent or legal guardian.

• Court-appointed guardians must submit relevant legal proof.

• Guardian KYC is mandatory as per PFRDA guidelines.

How to Apply Online

1. Visit: https://npstrust.org.in

2. Click on Open NPS Vatsalya

3. Select CRA

4. Enter minor & guardian details

5. Complete KYC via Aadhaar/CERSAI

6. Select investment option

7. Verify via OTP

8. Pay minimum ₹1,000

9. PRAN is generated instantly

Documents Required

• Guardian Aadhaar / PAN / Driving License

• Minor Date of Birth Proof

• Guardian Signature

• Passport & Address Proof (For NRI/OCI only)

• Bank Proof (For NRI/OCI)