NPS Vatsalya account can be opened online or offline at all major banks including SBI, HDFC Bank, ICICI Bank, Axis Bank, PNB, post office or Point of Presence center registered with PFRDA.
NPS Vatsalya: To secure the financial future of children, the Central Government’s NPS Vatsalya has been launched. On July 23 this year, during the 2024 budget speech, Union Finance Minister Nirmala Sitharaman announced the new pension scheme NPS Vatsalya for children up to 18 years. On Wednesday, September 18, in a program, the Finance Minister launched the portal for subscription of NPS Vatsalya Yojana. People from 75 different places across the country joined this program organized in Delhi. During this, Permanent Retirement Account Number i.e. PRAN was distributed to more than 250 children who opened accounts under the NPS Vatsalya scheme.
Who can open NPS Vatsalya account
NPS Vatsalya is for the citizens of India. People belonging to every financial class can open it with the aim of giving a better and secure financial future to their children below 18 years of age. This account can be opened by the parent or guardian on behalf of their children and can also be operated by the parent or guardian until the child turns 18 years old i.e. an adult.
What are the benefits of NPS Vatsalya Account
Opening an NPS Vatsalya account gives the child an early opportunity to get into the habit of saving for retirement and develops financial understanding in them from the early days. It establishes the importance of financial planning and discipline, which can be beneficial throughout the child’s life.
How does NPS Vatsalya account operate?
The account is opened in the name of the child by the natural or legal guardian.
The child in whose name the NPS Vatsalya account is opened is the sole beneficiary.
A Permanent Retirement Account Number i.e. PRAN is issued in the name of the child.
The NPS Vatsalya account is operated by the guardian exclusively for the benefit of the minor until the child attains adulthood i.e. till he attains the age of 18 years.
What is the process of opening NPS Vatsalya account?
NPS Vatsalya account can be opened through the following mediums
It can be opened online or offline through all the major banks including State Bank of India, HDFC Bank, ICICI Bank, PNB, Axis, post office or PFRDA registered Point of Presence (PoPs). You can directly apply to these financial institutions to open an account. Or you can take help from your trusted financial advisor or pension agent for this.
You can also apply for NPS Vatsalya account by visiting the online portal (eNPS) of NPS Trust. It is worth noting that the parent or guardian opening the account on behalf of the child will have to provide his date of birth, PAN card, mobile number and email ID details during the initial registration. The parent or guardian will have to provide the required information to download their KYC records from the Central KYC Registry (CKYCR) for the purpose of verification of their identity and address from the database of CKYCR registry. Details like name, address, date of birth, PAN number in the record are required for KYC.
For online registration, you can register with any of the following Central Recordkeeping Agencies (CRAs).
Protean
KFintech
Cams NPS
What is required for KYC of NPS Vatsalya account?
The KYC norms applicable for the parent should be as per the standards set by PFRDA.
In the case of a court-appointed legal guardian, a copy of the court order regarding the appointment of the legal guardian should be submitted along with the KYC documents.
How much can one open an NPS-Vatsalya account?
The NPS-Vatsalya scheme is an investment option in which parents or guardians can deposit money on behalf of their children to secure their financial future. Under the scheme, parents or guardians will be able to open an NPS-Vatsalya account in the name of their child with a minimum of Rs 1000. After that, till the age of 18, the parent or guardian will be able to deposit a minimum of Rs 1000 and any maximum amount in the child’s NPS-Vatsalya account every year. According to the SBI Pension Fund Platform, there is no limit on the maximum amount deposited in this account. This means that parents can deposit any amount in their child’s NPS-Vatsalya account.
How much corpus will be created
To explain the NPS-Vatsalya scheme, an example has been given on the SBI Pension Fund platform. For example, the information and calculations shown in the list below are based on data and estimates so far, which may differ from the actual returns received.
| Investment amount and tenure | Corpus in 18 years Rate of Return (10%) | Corpus in 60 years Rate of Return (10%) | Corpus in 60 years Rate of Return (11.59%) | Corpus in 60 years Rate of Return (12.86%) |
| Annual Contribution : Rs 10,000 | 5 Lakh | 2.75 crores | 5.97 crores | 11.05 crores |
According to the above list, if a parent is contributing Rs 10,000 every year in the NPS-Vatsalya account opened in the name of his child, then when the child becomes an adult, the corpus will be Rs 5 lakh at the rate of return of 10 percent. On reaching the age of 60, the corpus will be Rs 11.05 crore at the rate of return of 12.86%.
Annual contribution: Rs 10,000
Investment period: 18 years
Estimated corpus at age 18: Rs 5 lakh at 10% rate of return
Estimated corpus at age 60: Rs 2.75 crore at 10% rate of return
5.97 crores at 10% rate of return
11.05 crores at 10% rate of return
