About the Scheme
NPS Vatsalya is a contributory pension scheme for minor Indian citizens under 18 years, launched Sep 18, 2024. Operated by parents/guardians; regulated by PFRDA. Minimum: ₹1,000/year. Converts seamlessly to regular NPS Tier-I at age 18. Partial withdrawal allowed for education/illness after 3 years. Extends NPS architecture to children for intergenerational financial security.
Target Beneficiaries: Minor children under 18 years; parents/guardians as operators; future pension savers from childhood
Key Features
- For minor Indian citizens under 18 years; operated by parents or legal guardians
- Minimum contribution: ₹1,000/year; no upper limit; flexible contributions
- Converts to regular NPS Tier-I on attaining majority (age 18) after KYC update
- Partial withdrawal up to 25% after 3 years for education/illness/disability (max 3 times)
- Exit before 18: corpus <₹2.5 lakh — full withdrawal; >₹2.5 lakh — 80% compulsory annuity
- All NPS tax benefits under Section 80CCD extended to NPS Vatsalya
- PFRDA issued NPS Vatsalya Guidelines 2025 (January 2026)