AI SummaryNPS Vatsalya Scheme is a pension-cum-saving plan for minors under the National Pension System, regulated by PFRDA. Parents or legal guardians open and operate this account for a child below 18 years to build a long-term retirement corpus. The scheme was launched on 18 September 2024 and new registrations continue through 2026.
Under NPS Vatsalya, the minor is the sole beneficiary and the account stays in the child's name till the guardian operates it. Contributions start from a minimum of ₹250 per year with no upper limit, and relatives or friends can also gift money into the account. This makes it an easy way to begin savings for a child's future.
In January 2026, PFRDA issued the NPS Vatsalya Scheme Guidelines 2025 to put all operating rules in one place. These guidelines came into effect on 23 February 2026 and revised the minimum contribution from ₹1,000 to ₹250 per year. The new rules also set clear conditions for partial withdrawal, exit and continuation, and create a support framework for community workers such as Anganwadi workers, ASHAs and Bank Sakhis to help families in rural areas open accounts.
As of August 2026, registration is open for all Indian citizens below 18 years, including NRI and OCI children. You can open the account online through NPS Trust or the eNPS portal, or offline through any registered Point of Presence such as a bank branch.
NPS Vatsalya Scheme 2026 - Key Details
Main facts about NPS Vatsalya under the latest 2026 guidelines are given below:
| Detail | Information |
|---|---|
| Scheme Name | NPS Vatsalya Scheme |
| Level | Central |
| Regulator | PFRDA |
| Ministry | Ministry of Finance |
| Beneficiaries | Indian citizens below 18 years, including NRI and OCI children |
| Minimum Contribution | ₹250 per year, no upper limit |
| Partial Withdrawal | Up to 25% of own contributions, twice before 18 and twice between 18-21 |
| At Age 18 | Fresh KYC; continue, shift to NPS Tier I or exit with up to 80% lump sum |
| Application Mode | Online (NPS Trust / eNPS) and offline (PoP / bank) |
| Open Date | 18 September 2024 |
Benefits
NPS Vatsalya helps families build a secure financial base for children without putting a heavy burden on monthly income. Small regular contributions add up over time because of compounding.
- Long-term wealth building - The account stays invested for many years, so small yearly contributions grow with market-linked returns.
- Low entry amount - A minimum of ₹250 per year is enough to start, and there is no maximum limit.
- Partial withdrawal for real needs - Up to 25% of own contributions can be taken out after three years for education, medical treatment or specified disabilities.
- Tax benefit - Contributions to the account are eligible for deduction under Section 80CCD(1B) of the Income Tax Act up to ₹50,000 per year, subject to tax rules.
- Flexible exit at 18 - The child can continue the account, shift to NPS Tier I or exit with a lump sum based on the corpus.
Eligibility
Eligibility for NPS Vatsalya is simple and covers all young citizens of India.
- Any Indian citizen below 18 years of age can join, including NRI and OCI children.
- The minor is the sole beneficiary, and the account is opened in the child's name.
- A parent or legal guardian opens and operates the account on behalf of the child.
- Court-appointed guardians need to submit the relevant court order during application.
- All guardians must complete KYC as per PFRDA rules.
Contribution and Investment Options
You can put in as little as ₹250 or as much as you want in a year. Relatives and friends can also add money as gifts. The guardian selects one pension fund registered with PFRDA, and the money is invested as per the chosen mode:
| Investment Option | Details |
|---|---|
| Default Choice | Moderate Lifecycle Fund - LC-50 (50% equity) |
| Auto Choice | Aggressive (LC-75), Moderate (LC-50) or Conservative (LC-25) |
| Active Choice | Guardian decides the split, up to 75% in equity, 100% in debt and 5% in alternate assets |
Partial Withdrawal Rules
Partial withdrawal is allowed to meet genuine needs of the minor. Under the 2026 guidelines, withdrawal is possible only after completion of three years from account opening. Up to 25% of own contributions, excluding returns, can be taken out for higher education, medical treatment or specified disabilities. This facility can be used twice before the child turns 18 and twice between the ages of 18 and 21, subject to KYC completion and other conditions.
What Happens When the Child Turns 18
The account does not close at 18. Fresh KYC and nominee details must be submitted once the minor becomes an adult, and the subscriber gets options till the age of 21. The subscriber can continue under NPS Vatsalya, shift the account to NPS Tier I under the All Citizen Model, or exit the scheme. On exit, up to 80% of the corpus can be taken as a lump sum and the remaining 20% must be used to buy an annuity. If the total corpus is ₹8 lakh or less, the full amount can be withdrawn as a lump sum. Withdrawals stay blocked till KYC is completed, but the money keeps earning returns during that time.
Application Process
Online Process
You can open an NPS Vatsalya account online in a few steps. For a detailed walkthrough, check the NPS Vatsalya Scheme Registration guide.
STEP 1 - Visit the official NPS Trust website and open the 'Open NPS Vatsalya' page.
STEP 2 - Click the "Open NPS Vatsalya" button on the page.
STEP 3 - Choose your preferred Central Recordkeeping Agency (CRA).
STEP 4 - Enter the minor and guardian details and complete OTP based authentication.
STEP 5 - Fetch KYC data through UIDAI or CERSAI and upload proof of the minor's date of birth.
STEP 6 - Select the investment allocation and make the initial contribution of at least ₹250 to activate the account.
STEP 7 - After payment, the permanent retirement account number (PRAN) is generated for the minor.
Offline Process
Alternatively, you can visit any registered Point of Presence (PoP), such as your local bank branch, and complete the application in person.
Documents
Keep these documents ready to avoid delays in the application:
- Guardian's identity and address proof: Aadhaar, driving licence, passport, voter ID, NREGA job card or National Population Register documents, along with PAN or Form 60 as per Rule 114B.
- Minor's date of birth proof: birth certificate, school leaving certificate, matriculation certificate, PAN or passport.
- Signature of the guardian.
- For NRI or OCI applicants: scanned copy of passport, foreign address proof and the minor's sole or joint NRE/NRO bank account details.
References
PFRDA Website | NPS Vatsalya Scheme Guidelines 2025 PDF | NPS Trust Enrollment Page | PIB Press Release
FAQ's
What is NPS Vatsalya Scheme?
NPS Vatsalya is a pension-cum-saving plan for minors under the National Pension System, regulated by PFRDA. Parents or guardians save for a child below 18 years, and the account can be shifted or exited when the child becomes an adult.
Who can open an NPS Vatsalya account?
Any Indian citizen below 18 years, including NRI and OCI children, is eligible. A parent or legal guardian must open and operate the account in the child's name.
What is the minimum contribution?
The minimum initial and annual contribution is ₹250. There is no upper limit, and relatives or friends can also contribute as gifts.
When can partial withdrawal be made?
Partial withdrawal is allowed after three years from account opening. Up to 25% of own contributions, excluding returns, can be withdrawn for education, medical treatment or specified disabilities, twice before 18 and twice between 18 and 21.
What happens when the child turns 18?
Fresh KYC is required on attaining 18. The subscriber can continue under NPS Vatsalya till 21, shift to NPS Tier I, or exit with up to 80% as a lump sum and the rest as an annuity. Full withdrawal is allowed if the corpus is ₹8 lakh or less.
Is there any tax benefit?
Contributions to NPS Vatsalya can qualify for deduction under Section 80CCD(1B) of the Income Tax Act up to ₹50,000 per year, subject to tax rules.