enps.nsdl.com Enps Registration : Nps Vatsalya Scheme, Calculator

enps.nsdl.com Enps Registration : Nps Vatsalya Scheme, Calculator 2025

enps.nsdl.com Enps Registration : Nps Vatsalya Scheme, Calculator

The NPS Vatsalya Scheme was formally announced on September 18, 2024, by Nirmala Sitharaman during her Budget 2024 speech. This programme, which is a child-focused version of the National Pension Scheme (NPS), enables parents to ensure their children’s future by making contributions to their retirement fund. NPS Vatsalya is a contributory pension plan for children up to age 18, governed by the Pension Fund Regulatory and Development Authority.

To help assure long-term financial security, parents can open an NPS Vatsalya account and invest in both market-linked and fixed-income alternatives. The initiative serves as a voluntary contribution program with market connections that gives kids a head start on retirement preparation. It presents a viable financial option to increase retirement savings because of lower costs and cautious risk levels.

NPS Vatsalya Scheme for Minor Children :

Purpose: The NPS Vatsalya Scheme lets parents or guardians set up a National Pension Scheme (NPS) account for their minor children. This helps build retirement savings from a young age.

Eligibility: This scheme is designed solely for minors, with contributions allowed until the child reaches 18 years.

Contribution Details :

• Minimum contribution: ₹1,000 per year
• No upper limit on contributions
• Contributions can made annually or monthly

Regulating Authority: The Pension Fund Regulatory and Development Authority (PFRDA) oversees the scheme.

Objective :

• To ensure long-term financial security
• To instill retirement savings habits in children early on

How to Invest in the NPS Vatsalya Scheme ?

Registration Process: Parents or guardians can create an account via the eNPS website or at authorized Points of Presence (POP). After opening the account, they can make contributions through the eNPS site or the POP.

Withdrawal and Exit Rules of NPS Vatsalya :

Partial Withdrawal Before 18 Years :

• Allowed after 3 years of joining the scheme
• Up to 25% of the contributed amount can withdrawn
• Up to 3 withdrawals are permitted before the child turns 18
• Withdrawals for education, medical treatment for specific illnesses, or disabilities (over 75%) are allowed per PFRDA guidelines

Conversion to Regular NPS :

After turning 18, the NPS Vatsalya account can changed to a regular NPS account. The child must complete KYC within 3 months of turning 18, and the total amount is transferred to the new account.

Exit Options at Age 18:

• At least 80% of the total must invested in an annuity plan; 20% can withdrawn as a lump-sum.
• If the total is less than ₹2.5 lakh, the entire amount can taken as a lump sum.

NPS Vatsalya Scheme: Features

• Death of Subscriber (Minor Child): The full amount is returned to the guardian (nominee).
• Death of Guardian: A new guardian must registered with a new KYC.
• Death of Both Parents: A legal guardian can keep the scheme active without contributing until the child turns 18.
• Benefits of NPS Vatsalya Scheme
• Promotes Savings Habits: This scheme encourages children to learn about pensions and start saving early. When they turn 18, the account can converted to a standard NPS account for independent management.
• Portability: The account can easily transition to a regular NPS account when the child reaches 18, allowing continued growth of retirement savings.
• Financial Literacy: It teaches children about financial planning and saving for retirement, fostering good money habits.
• Long-Term Growth: Contributions made from an early age significantly grow the retirement corpus, leading to better returns at retirement. Up to 60% of the total amount can withdrawn as a lump-sum at retirement.
• Early Savings Advantage: Starting the account while the child is still a minor helps build a larger retirement fund by retirement age.
• Systematic Financial Security: The NPS Vatsalya Scheme provides families a structured way to secure their children’s financial future.
• Retirement Corpus Development: Early contributions through this scheme help children accumulate a substantial retirement fund, ensuring financial stability later in life.

NPS Vatsalya Scheme Overview :

Beneficiaries: This scheme is designed specifically for minors. Parents or guardians must open and manage the account for the child.

Account Management: The guardian handles the account until the child turns 18. Once the child reaches 18, the account transfers to their name, and they can continue using the funds.

Account Type at 18: When they turn 18, the account can converted to an NPS-Tier 1 Account or a non-NPS account.

PRAN Issuance: The Central Recordkeeping Agency (CRA) will provide a unique Pension Retirement Account Number (PRAN) for the minor.

KYC Process: A new KYC process is necessary when the minor turns 18 and must completed within three months.

Account Control: After KYC, the child can manage the account on their own.

Contribution Information :

• Minimum contribution: ₹1,000 per year
• No maximum limit on contributions
• Initial contribution for enrollment: ₹1,000
• The scheme permits partial withdrawals and exit options.

Interest Rate: The interest for the NPS Vatsalya Scheme is between 9.5% and 10%.

Eligibility Criteria :

• Age: Open to Indian citizens and NRIs/OCIs under 18.
• Account Holders: Parents or guardians can establish and control the account for the minor, who is the sole beneficiary, while the guardians serve as nominees.

Applicability:

• Target Audience: This scheme is aimed at parents or guardians of minor children.
• Post-18 Conversion: Once the child turns 18, the NPS Vatsalya account becomes a regular NPS account, which they can manage independently.

Financial Security: The scheme provides an investment opportunity for families to plan for their children’s financial future and retirement.

Investment Options under NPS Vatsalya :

How to Apply for NPS Vatsalya ?

1. Go to the eNPS website.
2. Click ‘Register Now’ under the ‘NPS Vatsalya (Minors)’ section.
3. Enter guardian details (date of birth, PAN, mobile, and email) and click ‘Begin Registration’.
4. Verify the OTP sent to the guardian’s mobile and email.
5. After verification, an acknowledgment number will generated. Click ‘Continue’.
6. Enter the minor’s and guardian’s information, upload required documents, and click ‘Confirm’.
7. Make the initial contribution of ₹1,000.
8. Complete dual OTP or eSign authentication.
9. The PRAN will generated, and the NPS Vatsalya account will opened for the minor.

Required Documents :

• Guardian KYC Documents: Aadhaar card, passport, driving license, NREGA job card, voter ID, or National Population Register documents.
• Guardian PAN: A copy of the PAN card.
• Minor’s Date of Birth Proof: PAN, birth certificate, matriculation certificate, school leaving certificate, or passport.
• Guardian’s Signature: Signed document.
• For NRI Applicants: Scanned passport, scanned foreign address proof, NRE/NRO bank account details.

OFFICIAL WEBSITE << enps.nsdl.com >> NPS Vatsalya Scheme Portal

FAQs: NPS Vatsalya Scheme 

1. What is the NPS Vatsalya Scheme?
   • A pension scheme for children under 18, allowing parents to contribute towards their retirement fund.
2. Who can open an NPS Vatsalya account?
   • Parents or guardians can open and manage the account for children up to 18 years old.
3. What is the minimum contribution?
   • The minimum contribution is Rs. 1,000 per year.
4. What are the investment options?
   • Contributions can invested in both market-linked and fixed-income instruments.
5. When does the child take control of the account?
   • The account is transferred to the child when they turn 18, and they can manage it independently.
6. What is the interest rate for the NPS Vatsalya Scheme?
   • The interest rate ranges between 9.5% to 10%.
7. How can I register for the NPS Vatsalya Scheme?
   • Parents or guardians can register online via the eNPS website or through authorized Points of Presence (POPs).
8. Can the scheme converted into a regular NPS account?
   • Yes, once the child reaches 18, the account can converted into a regular NPS account.