NPS Vatsalya Pension Scheme for Children: Account Setup, Required Documents and Withdrawal Details
The newly launched NPS Vatsalya Pension Scheme offers a strategic way for parents to secure their children’s financial future through a specialized pension account . This scheme leverages the benefits of long-term investments and compounding to build wealth for minors, operated by a guardian.
# How to Open an NPS Vatsalya Account
Opening Locations and Platforms
# How to Open an NPS Vatsalya Account
Opening Locations and Platforms
In-Person: Accounts can be opened at Points of Presence (POPs) such as major banks, India Post , and Pension Funds.
Online: You can also set up an account via the e-NPS platform.
# Required Documents
For the Guardian
- Identity Proof: Aadhaar, Driving License, Passport , Voter ID, NREGA Job Card, or National Population Register document.
- Address Proof: Same as identity proof.
For the Minor
- Proof of Birth: Birth Certificate, School Leaving Certificate, Matriculation Certificate, PAN, or Passport.
- Bank Account: NRE/NRO Bank Account (solo or joint) if the guardian is an NRI.
# Contribution Details
Initial and Subsequent Contributions
- Opening Contribution: Minimum of ₹1,000, with no upper limit.
- Annual Contributions: Minimum of ₹1,000 per year, with no upper limit.
# Investment Choices
Default Option
Moderate Life Cycle Fund - LC-50: 50% equity exposure.
Auto Choice
- Aggressive Fund - LC-75: 75% equity exposure.
- Moderate Fund - LC-50: 50% equity exposure.
- Conservative Fund - LC-25: 25% equity exposure.
Active Choice
- Equity: Up to 75%.
- Corporate Debt: Up to 100%.
- Government Securities: Up to 100%.
- Alternate Assets: Up to 5%.
# Withdrawal and Exit Conditions
Partial Withdrawals
Up to 25% of the contribution allowed after a 3-year lock-in period for education, specified illnesses, or disabilities. This can be done up to three times.
# Transition at Age 18
- If Corpus > ₹2.5 lakh: 80% of the corpus must be used to purchase an annuity, while 20% can be withdrawn as a lump sum.
- If Corpus ≤ ₹2.5 lakh:
The entire corpus can be withdrawn as a lump sum.
Death Benefits
In case of the minor’s death, the entire corpus will be returned to the guardian.
The NPS Vatsalya Pension Scheme offers a robust option for securing financial growth for children through flexible contributions, diverse investment choices, and structured withdrawal options.
Death Benefits
In case of the minor’s death, the entire corpus will be returned to the guardian.
The NPS Vatsalya Pension Scheme offers a robust option for securing financial growth for children through flexible contributions, diverse investment choices, and structured withdrawal options.
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