AI SummaryNPS Vatsalya Scheme is a pension plan made for minors, launched by Finance Minister Nirmala Sitharaman on 18 September 2024 under the Union Budget 2024-25. Parents and guardians can open a pension account in the name of their child and start saving from the time the child is born. The scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and is open to all Indian citizens below 18 years of age.
PFRDA issued the NPS Vatsalya Scheme Guidelines 2025 on 7 January 2026, which updated the earlier rules. The minimum contribution has been brought down to ₹250 per account, and there is no upper limit on how much you can deposit. Once the child turns 18, the account can be shifted into a normal NPS account under the All Citizen Model. Registration is available online through the official NPS website or through banks and other registered service providers.
What is NPS Vatsalya Scheme?
NPS Vatsalya is a contributory saving cum long-term financial security scheme made only for minors. It helps parents build a retirement corpus for their child from an early age and supports the vision of Viksit Bharat 2047. The child is the sole beneficiary of the account, while the parent or legal guardian manages it until the child turns 18. The scheme also allows partial withdrawals for education and medical needs before the child reaches adulthood.
How to Register for NPS Vatsalya Scheme?
Parents and guardians can open an NPS Vatsalya account online through the official NPS Trust website at npstrust.org.in or through the CAMS eNPS portal at www.camsnps.com. The account can also be opened by visiting any registered Point of Presence (PoP), such as banks, India Post, or pension funds.
STEP 1 - Go to the official NPS Vatsalya page on the NPS Trust website or the CAMS eNPS portal and click on the option to open a new NPS Vatsalya account.
STEP 2 - Fill in the details of the guardian, such as mobile number, email ID, and PAN number, along with the basic details of the minor child.
STEP 3 - Choose the Central Recordkeeping Agency (CRA) and the Pension Fund from the list of registered options with PFRDA.
STEP 4 - Upload the required documents, including the proof of date of birth of the child and the KYC documents of the guardian.
STEP 5 - Make the minimum contribution of ₹250 and submit the application to complete the registration process.
NPS Vatsalya Scheme Calculator
Before investing, it helps to know how much you need to deposit and the returns you can expect. The NPS Vatsalya Calculator is available on the official NPS Trust website at npstrust.org.in. You can use this tool to check how your savings will grow over time based on the amount you invest and the pension fund you choose.
NPS Vatsalya Scheme Highlights
| Detail | Information |
|---|---|
| Scheme Name | NPS Vatsalya Scheme |
| Launched By | Finance Minister Nirmala Sitharaman |
| Launched On | 18 September 2024 |
| Regulated By | PFRDA |
| Scheme For | Minors below 18 years |
| Minimum Contribution | ₹250 per year |
| Maximum Contribution | No upper limit |
| Partial Withdrawal | Up to 25% of contributions |
| Help Line Number | 1800 2100 080 |
| Official Website | npstrust.org.in |
NPS Vatsalya Scheme Eligibility
Any Indian citizen below the age of 18 years can join the scheme. Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) under 18 years of age are also eligible. A parent or a legal guardian opens and manages the account on behalf of the minor, and the child remains the sole beneficiary of the account.
Documents Required for NPS Vatsalya Registration
To open an NPS Vatsalya account, you need to submit proof of the child's date of birth and the KYC documents of the guardian. The required documents are listed below.
- Proof of date of birth of the child, such as a birth certificate, school leaving certificate, matriculation certificate, PAN, or passport.
- KYC of the guardian, including Aadhaar, driving license, passport, voter ID, NREGA job card, or National Population Register documents.
- PAN of the guardian or a Form 60 declaration as per Rule 114B.
- Bank account details of the minor or a joint bank account with the minor, which is required at the time of withdrawal or exit.
NPS Vatsalya Scheme Benefits
The scheme offers a safe and government-backed way to save for a child's future. The main benefits are given below.
- Long-term savings: Start with a small amount of ₹250 and let the money grow through compounding until the child turns 18.
- Partial withdrawals: Up to 25% of contributions can be withdrawn for the education of the child, treatment of specified illnesses, or disability of more than 75%.
- Tax benefits: The amount invested in the scheme is tax-efficient and helps reduce the tax burden on the guardian.
- Easy shift at 18: Once the child turns 18, the account can be shifted into a normal NPS account under the All Citizen Model.
Partial Withdrawal Rules
Partial withdrawal is allowed under the scheme to meet unexpected needs. The guardian can make a partial withdrawal only after being in the scheme for at least three years from the date of account opening. Up to 25% of the contributions, excluding the returns, can be withdrawn, and not more than two partial withdrawals are allowed before the child turns 18. Two more partial withdrawals can be made between the ages of 18 and 21 after completing the required KYC.
What Happens When the Child Turns 18?
When the child turns 18, the account continues under the scheme for up to three years unless the subscriber chooses to exit or shift to the All Citizen Model. During this period, the child must complete fresh KYC and provide nominee details. After that, the child can continue within NPS with the full corpus shifted to the All Citizen Model, or take up to 80% of the corpus as a lump sum and invest the balance in an annuity, or withdraw the full corpus as a lump sum if the total amount is less than ₹8 lakh.
FAQ's
Who can open an NPS Vatsalya account?
Any Indian citizen below 18 years of age can join the scheme. A parent or legal guardian opens and manages the account on behalf of the minor.
What is the minimum contribution for NPS Vatsalya?
The minimum contribution for account opening and the annual contribution is ₹250. There is no upper limit on the amount you can deposit.
Can I withdraw money from the NPS Vatsalya account?
Yes, partial withdrawal of up to 25% of contributions is allowed for the education of the child, treatment of specified illnesses, or disability of more than 75%, after being in the scheme for at least three years.
What happens to the account when the child turns 18?
The account can be shifted into a normal NPS account under the All Citizen Model, or the child can take up to 80% of the corpus as a lump sum and invest the balance in an annuity, or exit fully if the corpus is less than ₹8 lakh.