Produced by: BT Desk Designed by: Manoj Kumar
Unveiled by Nirmala Sitharaman, NPS Vatsalya is a groundbreaking pension plan designed for minors. Launched across 75 locations, it has already issued over 250 PRANs, providing a future safety net for children.
Parents can invest as little as ₹1,000 annually in NPS Vatsalya to build long-term savings for their children.
Investing ₹10,000 annually for 18 years can yield a corpus of ₹5 lakh at a 10% return. If contributions continue until age 60, your child could save up to ₹11.05 crore at a 12.86% return, ensuring a financially secure future.
Any minor under 18 with a PAN and Aadhaar card is eligible for NPS Vatsalya. Parents or guardians can contribute on behalf of their children, ensuring flexibility and ease of access for families across all financial backgrounds.
When the minor reaches 18, the NPS Vatsalya account automatically transitions into a standard NPS account.
The scheme allows partial withdrawals after three years for specific purposes like education, illness, or disability. Upon turning 18, subscribers can either withdraw 20% of the corpus as a lump sum or use 80% to purchase an annuity.
To open an NPS Vatsalya account, minors need to provide proof of date of birth, PAN, and Aadhaar. Guardians must complete KYC formalities, submitting their identity and address proof, ensuring a hassle-free enrollment process.
Several banks, including ICICI, Axis, Canara, and Central Bank of India, have launched NPS Vatsalya accounts. You can open an account by visiting bank branches or through online platforms like eNPS, making it accessible nationwide.
The eNPS platform offers a convenient way for parents to open and manage their child’s NPS Vatsalya account. Contributions can be made online, ensuring a seamless process to secure your child’s financial future from the comfort of home.
NPS Vatsalya allows parents to make annual contributions with no maximum limit. This flexibility ensures that families from different financial backgrounds can invest as per their capacity, making long-term savings accessible to all.
NPS Vatsalya is designed for all financial situations, with contributions starting as low as ₹1,000.
With NPS Vatsalya, up to 25% of the corpus can be withdrawn for a child’s education or health emergencies after three years. This flexibility ensures that the savings serve both long-term and immediate family needs.
The funds invested in NPS Vatsalya are managed by expert pension fund managers, ensuring a stable and secure environment for long-term wealth generation. This provides peace of mind for parents and guardians investing for their children.