NPS Vatsalya

Who can apply for NPS Vatsalya

• Any Indian citizen under 18, including eligible NRIs and OCIs.
• The account is in the child's name and operated by a parent or legal guardian. The child is the only beneficiary.
• A new account cannot be opened after the child turns 18.

NPS Vatsalya benefits

• Start with ₹250 and pay at least ₹250 each financial year. There is no upper limit, and relatives and friends can also contribute.
• After 3 years, up to 25% of own contributions can be withdrawn for education, treatment of specified illnesses, or disability above 75%.
• Partial withdrawals are allowed twice before 18 and twice between 18 and 21.
• At 18, after fresh KYC, the child can continue till 21, move to regular NPS, or exit.
• On exit, a corpus up to about ₹8 lakh can be taken in full. Above that, up to 80% as a lump sum and at least 20% in an annuity.
• Under the old income-tax regime, parents can claim a deduction of up to ₹50,000 for contributions.

How to apply for NPS Vatsalya

1. 1Online: open the NPS Trust page and choose a central recordkeeping agency (Protean, KFintech or CAMS) to register through eNPS.
2. 2Offline: apply at a Point of Presence, such as a major bank or India Post.
3. 3Give the child's date-of-birth proof and the guardian's KYC details.
4. 4Choose a pension fund and make the first contribution of at least ₹250.

Documents needed for NPS Vatsalya

• Child's date-of-birth proof: birth certificate, school leaving or matriculation certificate, or PAN or passport
• Guardian's KYC: Aadhaar, driving licence, passport, voter ID, NREGA job card or NPR document
• Guardian's PAN or Form 60
• Bank account details (optional for residents at opening; mandatory for NRIs and OCIs)

Where it applies

Every state and union territory. See what else applies near you