NPS Vatsalya Scheme 2024 Eligibility, Benefits, and Online Apply

NPS Vatsalya Scheme is a pension account scheme for minors. The scheme is launched by the Finance Minister of the Government of India, Mrs. Nirmala Sitharaman, on 18th September 2024. This initiative was taken in the 2024-25 budget. The main objective of this scheme is to secure the future of children and create investment habits in them.

Union Finance Minister Nirmala Sitharaman launched the scheme online, and all minors who register under the scheme will be issued a permanent retirement account number card. Parents or guardians can apply on behalf of children in this scheme till they reach 18 years of age. The minimum deposit is Rs.1000 per year. The scheme has a locking period of three years to withdraw 25% of the amount after three years.

NPS Vatsalya Scheme 2024

NPS Vatsalya Scheme is a central government scheme through which parents or guardians secure their children’s future. The Pension Fund Regulatory and Development Authority administers this scheme. In this scheme, parents or guardians can invest a minimum of 1000 rupees per month. This investment has no upper limit. This scheme has a lock-in period of three years. After that 25% of investment can be withdrawn for education, disability, or specified purposes. This is possible only after three years.

Through this scheme parents or guardians can invest on their children’s behalf to secure their future. This post shows how you can apply, what is the eligibility criteria, and what kind of documents are required to apply for this scheme.

Overview

This scheme is a prestigious scheme of the central government through which investments are made to strengthen the future of minors. This scheme provides a good return on less investment through compound interest.

Scheme Name	NPS Vatsalya Scheme
Managed by	The Pension Fund Regulatory and Development Authority
Announcement by	Finance Minister Nirmala Sitharaman
Beneficiary	Minor Children
Age Limit	0-17 years
Application Mode	Online
Official Website	https://enps.nsdl.com/eNPS/

Eligibility Criteria

NPS Vatsalya Scheme is an important scheme through which every parent invests in their children’s future. The main purpose is that those without an idea about the investment get their compound interest profit through this government scheme. Interested applicants can check the eligibility criteria before applying for this scheme for their children.

1. All Indian Minors will be eligible to apply for this scheme.

Operations

1. The account shall be opened in the minor’s name and managed by his/her legal guardian or parent.
2. The minor will be the only beneficiary.

Benefits

The benefits of the scheme are discussed below.

1. This scheme will teach good savings habits to children and build long-term wealth.
2. Parents will get many options for investment and can strategize risk management and meet financial goals through this scheme.
3. When the minor reaches the age of 18 years, their account will be automatically transferred to the normal NPS account.
4. Through this scheme, you can withdraw 25 per cent of your total investment after a lock-in period of three years for Education, Disability, and Specified Illness. You can do this three times in total.
5. In this scheme, the minor can exit the scheme at any time and withdraw all his investment when he attains the age of 18 years. If your corpus is more than 2.5 lakh rupees, you can withdraw 20% of the amount and 80%, you must buy the entity. You can withdraw the entire amount if your corpus is less than or equal to 2.5 lakh rupees.

Documents Required

1. DOB Proof of Minor
2. KYC of Guardian by submitting Proof of Identity and Address (Aadhaar, Driving License, Passport, Voter ID card, NREGA Job Card, National Population Register).
3. Guardian Signature
4. A scanned copy of the Passport (Applicable only for NRI )
5. Scanned copy of Foreign Address proof (Applicable only for OCI )
6. Bank Account Proof( for NRI/OCI applicants)

How do you apply for the NPS Vatsalya Scheme?

For those guardians or parents of minors who wish to apply for the NPS Vatsalya scheme, below is the step-by-step guide on submitting an online application. So, read the post from beginning to end to apply easily.

1. To apply for the scheme, applicants must first visit the official website of e-NPS at https://enps.nsdl.com/eNPS/.
2. Scroll down to the homepage and click the Register Now option under the NPS Vatsalya tab.
3. Then, a registration form will open, and the applicant will have to enter your Guardian DOB, PAN Card Number, Mobile Number, Email ID, etc., and then click on the Begin Registration option.
4. Then applicant will receive an OTP in their registered phone number and email ID to verify.
5. Once OTP verification is done, an acknowledgement number will be generated on the screen. Then, the applicant has to click on the continue option.
6. After that, the application form will open, and then fill in all required details and upload all documents that are asked to be uploaded.
7. Next, applicants have to pay a minimum investment of Rs 1000.
8. Thereafter, the Minor’s Permanent Retirement Account Number will be generated, and an NPS Vatsalya Account will be created.

Investment Choice Under the NPS Vatsalya Scheme

1. Default Choice: Moderate Life Cycle Fund- LC -50(50% equity)
2. Auto Choice: A guardian or Parent can Choose a Lifecycle Fund – Aggressive – LC-75(75% Equity), Moderate LC -50(50% equity), Conservative LC-25(25% equity).
3. Active Choice: A guardian or Parent can choose the allocation of funds across Equity( up to 75%), Corporate Debt (up to 100%), Government Securities (up to 100%), and Alternate Asset(up to 5%)

FAQ