⁠Nps Vatsalya Pension Scheme for Minor Children (Kids) : Apply Online, Amount, Eligibility, Calculator, Pdf

Check ⁠Nps Vatsalya Pension Scheme for Minor Children (Kids) : Apply Online, Amount, Eligibility, Calculator, Pdf 2024 2025.

NPS Vatsalya Pension Scheme for Minor Children : Key Points

• Overview : A pension scheme launched for minors, enabling parents to secure their children’s financial future through the National Pension Scheme (NPS).
• Launch Date : Officially launched on September 18, 2024, by Finance Minister Nirmala Sitharaman.
• Eligibility :
  • Open to Indian citizens under 18 years.
  • Includes Non-Resident Indians (NRIs) and Overseas Citizenship of India (OCI) individuals.
• Contribution :
  • Minimum : ₹1,000 per year.
  • No upper limit on contributions.
• Account Management :
  • Managed by parents or guardians until the child turns 18.
  • Unique Pension Retirement Account Number (PRAN) issued.

⁠Nps Vatsalya Pension Scheme for Kids : Apply Online

For many years, the National Pension Scheme (NPS) became a crucial part of retirement planning in India, offering people a structured savings option. Finance Minister Nirmala Sitharaman proposed the “NPS Vatsalya Yojana,” which is primarily intended for minors, in order to spread these benefits to younger generations. This program, which was formally introduced on September 18, 2024, enables parents to make predetermined contributions on their children’s behalf in order to assist them create a retirement account for the future. The following article explores the NPS Vatsalya Yojana’s features, advantages, eligibility requirements, and online application process.

NPS Vatsalya Pension Scheme  :

NPS Vatsalya Scheme : Eligibility, Tax Benefits & How to Apply Online

Latest Update :

• Launch Date : Finance Minister Nirmala Sitharaman launched the NPS Vatsalya Scheme on September 18, 2024.
• Purpose : This scheme enables parents to contribute to a National Pension Scheme (NPS) account for their minor children, helping to secure their financial future and create a retirement fund.

Overview of the NPS Vatsalya Scheme :

Target Audience : Aimed at minors, it allows parents and guardians to start an NPS account.

Contribution :

• Minimum annual contribution of ₹1,000.
• There is no upper limit on contributions.
  Focus: This version of the NPS is specifically designed to support retirement savings for young individuals.

Features of the NPS Vatsalya Scheme :

Account Operation :

• Managed by guardians until the child turns 18.
• The minor is the exclusive beneficiary.
• PRAN Issuance : A unique Pension Retirement Account Number (PRAN) is issued by the Central Recordkeeping Agency (CRA).
• Account Continuation : When the child turns 18, the account automatically converts to an NPS-Tier 1 Account – All Citizen Model.
• KYC Requirement : New KYC must have completed within three months after turning 18.
• Withdrawal Options : The scheme offers options for partial withdrawal and account exit.

Benefits of NPS Vatsalya Scheme :

1. Promotes Savings : Encourages children to develop savings habits, transitioning to a standard NPS account when they reach 18.
2. Encourages Savings : After a youngster reaches the age of 18, the program transfers them to a regular NPS account.
3. Portability : Makes switching jobs simple and doesn’t impact the NPS account.
4. Long-Term Growth : Early contributions build up a sizable retirement fund.
5. Financial Management : Instills sound financial management in children at an early age.
6. Future Security : Provides a methodical strategy for guaranteeing children’s retirement planning and financial security.Encourages Savings: After a youngster reaches the age of 18, the program transfers them to a regular NPS account.

Eligibility Criteria :

• Indian citizens under 18 years.
• Non-Resident Indians (NRIs) and Overseas Citizens of India (OCI) under 18 years.
  Account Management:
  Parents or guardians can open and oversee the account, acting as nominees while the child remains the beneficiary.

Applicability :

• Scope : The scheme is open to all parents and guardians of minor children.
• Post-18 Transition : The account changes into a standard NPS account once the child reaches 18, providing a new investment opportunity.

How to Apply for the NPS Vatsalya Scheme ?

• Go to the eNPS website.
• Click ‘Register Now’ under the ‘NPS Vatsalya (Minors)’ section.
• Enter the guardian’s date of birth, PAN, mobile number, and email; then select ‘Begin Registration’.
• Verify using the OTP sent to the guardian’s mobile/email.
• After verification, an acknowledgment number will appear; click ‘Continue’.
• Input details for both the minor and guardian, upload required documents, and click ‘Confirm’.
• Make the initial contribution of ₹1,000.
• A PRAN will created, and the account will activated in the minor’s name.

Required Documents :

• Aadhaar card of the guardian.
• Proof of the minor’s date of birth.
• Guardian’s signature.
• Scanned passport (for NRI subscribers).
• Proof of foreign address (for OCI subscribers).
• Bank proof (for NRI or OCI subscribers).

NPS Vatsalya Scheme for Minor Children :

Overview : The NPS Vatsalya Scheme was created in Budget 2024 to let parents and guardians open a National Pension Scheme (NPS) account for their minor children.

Contributions :

• Parents can make contributions either monthly or annually until the child is 18 years old.
• The minimum annual contribution is ₹1,000, and there is no maximum limit.

Purpose :

• This scheme aims to help young individuals build their financial future through retirement savings.

Features of the NPS Vatsalya Scheme :

Account Operation :

• Parents or guardians can set up the NPS Vatsalya account for the minor, who will benefit from it exclusively.
• The guardian manages the account until the child reaches 18.

Pension Retirement Account Number (PRAN) :

• A unique PRAN, assigned to the minor by the Central Recordkeeping Agency (CRA).

Account Transition :

• When the child turns 18, the account will change to an NPS-Tier 1 Account under the All Citizen Model.
• A new KYC process needs to completed within three months of the child reaching adulthood.

Contributions :

• The initial contribution for enrollment is ₹1,000.
• The scheme permits partial withdrawals and offers exit options.

Investment Choices Under NPS Vatsalya :

• Default Choice : Moderate Lifecycle Fund – LC-50 (50% equity).
• Auto Choice : Options include Aggressive Lifecycle Fund – LC-75 (75% equity), Moderate Lifecycle Fund – LC-50 (50% equity), and Conservative Lifecycle Fund – LC-25 (25% equity).
• Active Choice : Parents can distribute funds among equity (up to 75%), government securities, corporate debt, and alternative assets.

Withdrawal and Exit Rules :

          Partial Withdrawal Before 18 :

• Available after three years of joining NPS.
• Withdraw up to 25% of the contributed amount.
• A maximum of three withdrawals can made for specific reasons (education, severe disability, medical expenses).
  Post-18 Account Management:
• Can converted to a standard NPS account when turning 18.
• A new KYC is needed within three months after reaching adulthood.
  

  Withdrawal Upon Exit :

• At least 80% of the total corpus must reinvested in an annuity plan; 20% can taken as a lump sum.
• If the corpus is under ₹2.5 lakh, the entire sum can withdrawn.
  

  Death Benefits :

• In the event of the minor’s death, the full corpus returned to the guardian (nominee).
• If the guardian dies, a new guardian must appointed.
• If both parents pass away, a legal guardian can maintain the scheme without additional contributions until the child turns 18.

OFFICIAL WEBSITE << pib.gov.in >> NPS Vatsalya Yojana

CLICK HERE  to download the NPS Vatsalya Yojana Notification PDF.