The NPS Vatsalya Scheme is a special variant of the National Pension System (NPS) designed for minor children.
It enables parents and guardians to initiate long-term retirement planning for their children, starting from an early age.
This government-backed pension product offers structured, low-cost investment options for building wealth over decades.
Let’s explore what the scheme is, who can apply, its benefits, how to open the account, and how it compares to other savings plans.
What is the NPS Vatsalya Scheme for minor children?
NPS Vatsalya is a retirement planning scheme for minors under the umbrella of the National Pension System (NPS). The account is opened in the name of a child under 18 years of age by a parent or legal guardian. Contributions made during the minor’s early years are invested systematically to provide a retirement corpus when they turn 60.
Once the child turns 18, the account is converted into a regular NPS Tier-I account.
Who is Eligible for NPS Vatsalya?
To apply for this scheme, the following eligibility criteria must be met:
| Eligibility Criteria | Details |
| Age of the minor | Below 18 years |
| Applicant | Parent or legal guardian |
| Residency | Indian citizens and NRIs eligible |
| Documents required | Birth certificate, guardian KYC, minor photo, address proof |
This scheme is also available to NRIs who wish to start pension investments in India for their children.
NPS Vatsalya Scheme for Minor Children Calculator
NPS Vatsalya Calculator
NPS Vatsalya Scheme for Minor Children Interest Rate
Unlike fixed schemes like PPF or Sukanya Samriddhi Yojana, the NPS Vatsalya Scheme does not have a fixed interest rate. Instead, it offers market-linked returns, which means the growth of your investment depends on how the selected pension fund manager performs across equity, corporate bonds, and government securities.
🧮 Historical Average Returns:
| Asset Class | Historical Returns (5–10 years) |
|---|---|
| Equity (E) | 9% – 12% |
| Corporate Bonds (C) | 8% – 10% |
| Government Securities (G) | 7% – 9% |
How to Open NPS Vatsalya Account for minor children
There are two ways to open an NPS Vatsalya account:
Option 1: Online via eNPS Portal
- Visit https://enps.nsdl.com/eNPS/
- Choose “Registration for Minor”
- Enter guardian and minor details
- Upload KYC documents
- Select investment preferences (Active or Auto)
- Make the first contribution
Option 2: Offline at PoP (Point of Presence)
- Visit any authorized bank, post office, or financial institution registered as PoP
- Fill out the NPS Vatsalya application form Open Form here
- Submit documents (minor’s ID, guardian’s KYC)
- Pay initial contribution
The Central Recordkeeping Agency (CRA) will generate a unique PRAN (Permanent Retirement Account Number) for the minor.
Contributions & Investment Options for minor children
Minimum Contribution:
- ₹500 per contribution
- ₹1,000 annually
Investment Options:
You can choose between:
- Active Choice – decide asset allocation manually
- Auto Choice – system decides based on child’s age
Three life cycle funds are available:
- LC-75: High equity exposure
- LC-50: Balanced option
- LC-25: Conservative
All investments are managed by registered Pension Fund Managers under PFRDA (Pension Fund Regulatory and Development Authority).
How to Fill the NPS Vatsalya Scheme Form Offline
- Download the NPS form (either from the NSDL/CRA website or get a physical copy from a POP/Bank).
- Fill in the minor’s details carefully. Any mismatch with documents can delay account activation.
- Complete the guardian’s section, ensuring all KYC info is accurate.
- Choose your pension fund manager (such as SBI Pension Funds, HDFC, etc.).
- Select your investment option (Auto or Active).
- Attach the necessary documents.
- Sign the form and submit it to your nearest Point of Presence (POP) or NPS service center.
Where to Submit the NPS Vatsalya Form?
You can submit the filled NPS Vatsalya Scheme form at:
- Any authorized Point of Presence (POP) like SBI, HDFC, ICICI, etc.
- NSDL CRA offices https://enps.nsdl.com/eNPS/NationalPensionSystem.html
- Certain online NPS platforms that offer minor account openings (subject to availability)
Key Benefits of NPS Vatsalya Scheme for minor children
- Early financial discipline for children
- Long-term compounding growth
- Choice of investment styles
- Backed by the Government of India
- Seamless transition to adult NPS at 18
- Low fund management fees (one of the lowest in India)
It’s a smart way to build a pension corpus for your child from an early age.
Tax Benefits
The parent or guardian contributing to the NPS Vatsalya account can claim tax deductions under:
- Section 80CCD(1): Up to ₹1.5 lakh (within Section 80C limit)
- Section 80CCD(1B): Additional ₹50,000
Note: These deductions are claimed by the contributor, not the minor.
Withdrawal & Maturity Rules
Before 18 Years:
- Withdrawals not allowed unless under exceptional circumstances
After 18 Years:
- Account becomes a regular NPS Tier-I account
- The now-major subscriber can continue investing
- Withdrawals allowed as per normal NPS rules:
- 60% lump sum withdrawal at 60
- 40% to be used for annuity (pension)
- 60% lump sum withdrawal at 60
NPS Vatsalya vs Other Child Investment Schemes
| Feature | NPS Vatsalya | Sukanya Samriddhi Yojana | PPF |
| Eligible Age | Below 18 (boys/girls) | Girls below 10 years | Anyone (including minors) |
| Investment Tenure | Till 60 years of child | 21 years from account opening | 15 years |
| Risk & Returns | Market-linked (Moderate) | Fixed interest (Govt set) | Fixed interest (Govt set) |
| Tax Benefit | 80C + 80CCD(1B) | 80C | 80C |
| Withdrawals | Limited, only at maturity | Partial at 18, full at 21 | Partial after year 7 |
NPS Vatsalya is ideal for retirement planning, not short-term needs.
❓ Frequently Asked Questions
1. Can NRIs open NPS Vatsalya accounts?
Yes, NRIs can open and contribute to NPS Vatsalya for their children.
2. What is the minimum age to open an account?
There is no minimum age, but the child must be under 18 years at the time of registration.
3. Can I withdraw money before the child turns 18?
Withdrawals are not allowed before 18, except in exceptional circumstances.
4. What happens when the child turns 18?
The account is converted into a regular NPS Tier-I account in the child’s name.
5. Is the scheme safe?
Yes. It is regulated by PFRDA and offers investment through trusted fund managers.
📌 Final Thoughts
The NPS Vatsalya Scheme for minor children is a forward-thinking step toward securing your child’s financial future and retirement. It introduces investment discipline from a young age, provides market-linked growth, and offers substantial tax benefits.
If you’re looking for a long-term, low-risk, government-backed pension scheme for your child, NPS Vatsalya is one of the best options available.
✅ Start early, invest smart — and give your child a worry-free retirement.
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