The NPS Vatsalya Yojana, a new pension scheme launched by the Central Government on 18 September 2024, is gaining quick traction. This scheme is designed to help parents or guardians secure the financial future of their children by opening a National Pension System (NPS) account in their name. In just two weeks since its launch, around 33,000 accounts have already been opened for minors.
When the scheme was rolled out, nearly 9,700 people subscribed on the very first day. This strong response indicates the growing interest among parents to save for their children’s future through a structured pension scheme.
Key Features of NPS Vatsalya
The NPS Vatsalya scheme has been crafted to provide long-term benefits with minimal investment. Parents or guardians can open an account in their child’s name with a minimum deposit of Rs 1,000 annually. The process involves submitting the child’s birth certificate and completing KYC formalities. Once the child turns 18, the account can be converted into an NPS Tier-1 account, allowing them to continue saving for their retirement.
When the account holder reaches 60 years of age, they can start receiving a pension, ensuring a stable income in their later years.
Why NPS Vatsalya is Beneficial for Families
NPS Vatsalya is a flexible pension scheme with fewer expenses and significant benefits. It offers the advantage of compound interest, which helps small savings grow into substantial funds over time. The scheme allows families from all financial backgrounds to participate, providing equal opportunities for everyone to invest in their children’s future.
Parents can easily open an account for minors through government and private banks, post offices, pension funds, or online platforms like e-NPS. Additionally, a parent or guardian can contribute any amount above the minimum of Rs 1,000, making it a versatile savings tool for those looking to invest more.
Who is Eligible for NPS Vatsalya?
Children under 18 years of age with an Aadhaar card and PAN are eligible for the scheme. The account must be opened by a parent or guardian, and there is no upper limit on the amount they can contribute. For non-resident parents, an NRI or NRO account is required to participate.
Documents required for opening the account include:
- Aadhaar card and KYC details of the parent or guardian
- Proof of the child’s date of birth
- If applicable, NRI/NRO account details for non-resident parents
The launch of the NPS Vatsalya Yojana has opened doors for families to plan a secure financial future for their children, with a promising start that saw 33,000 accounts opened in just two weeks.
