NPS Vatsalya: How to invest, eligibility criteria, and online buying guide

The Union Finance Minister, Nirmala Sitharaman, launched the NPS Vatsalya scheme that offers a pension account for minors and comes with an online platform to make it easier to subscribe.
During the launch, the minister issued Permanent Retirement Account Number (PRAN) cards to newly registered minors.
The NPS Vatsalya scheme is designed to help parents save for their children’s future by creating long-term financial security.
Managed by the Pension Fund Regulatory and Development Authority (PFRDA), it allows families to invest for their children’s future starting at a young age, offering them the power of compounding over time.
NPS Vatsalya enables parents or guardians to open a pension account for minors and contribute as little as Rs 1,000 annually, making it accessible to families from various economic backgrounds.
This flexibility in contributions, along with investment choices, helps build long-term wealth for the child. The idea is to ensure financial security as the child grows older, with the pension account providing significant savings over time.
According to information available on the Central Bank of India’s website, the NPS Vatsalya scheme allows withdrawals under certain conditions. Here are the main points:
As highlighted on the Reserve Bank of India’s website, here are the main features of the NPS Vatsalya scheme:
The NPS Vatsalya account can be opened both offline and online. Parents or guardians can visit designated Points of Presence (POPs) such as major banks, India Post offices, and pension funds.
Additionally, an online option is available through e-NPS, making the process more convenient for users.
CAMS, a major service provider for NPS, recently sent an SMS to NPS investors saying, “NPS Vatsalya Scheme for minors is being launched today. The scheme allows you to open an account for your child’s secure future. This scheme, regulated by PFRDA, provides a range of investment choices and NPS benefits from a young age.”
To open an NPS Vatsalya account, the following documents are needed:
Guardians can select a PFRDA-registered pension fund for the minor’s NPS Vatsalya account. The scheme offers a variety of investment options: