NPS Vatsalya Scheme :- Eligibility, Contribution, Interest Rate and Benefits

NPS Vatsalya is a saving with pension for minors in India, this scheme launched by government of India by the Aam Budget 2024-2025.in this scheme parents or guardians of minors can open an account and make contribution with a minimum annual amount of 1000. After passed the age of 18 such account convert regular NPS account.

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What is NPS Vatsalya Scheme ?

NPS Vatsalya is a financial saving cum Pension scheme , give freedom for minors (Under age of 18), This scheme is launched by government of India on 18 September 2024, its covered und National Pension Scheme.
This scheme is applicable only minors who are Indian, assist to parents or guardian to secure the financial future of their juveniles, parents or guardian can open account for such scheme also operated by them. Minimum amount for the NPS Vatsalya Scheme 1000 no maximum limit.
The NPS Vatsalya regulated by PFRDA(pension fund Regulatory Authority of India)

Eligibility and How to Open NPS Vatsalya Account:-

Indian citizen can open account the NPS Vtasalya for their minors and operated by them till minors pass in 18 year and KYC competed as per guidelines issued by PFRD.

Process for the open NPS Vatsalya account

Visit the eNPS website and go through all things including terms and condition.
Click on register option under NPS Vatsalya.
Enter the Parents or gordian details including date of birth, PAN number, mobile number and Email id and Begin registration process
Enter the OPT received on mobile number given during registration process.
Submit the Minors details whose account will be open and upload all the require documents.
Make the initial minimum contribution payments Rs 1000.
Completed with OTP
Now the PRAN Number will be generated and the NPS Vatsalya account will opened in yhe name of minor.

Also read:- unified Pension Scheme(UPS)

Documents Required for open NPS Vatsalya account

following documents required of the parents or guardian for open a NPS Vatsalay account.

Aadhar card/passport/driving license/NAREGA job card/voter id.
PAN Card
Signature
Scanned copy of passport in case a NRI subscribers
Date of birth proof of minor

Benefits at 18 year

If the corpus is 2.5 lakhs or more, 20% can be withdrawn as a lump-sum amount and remaining must be used to purchase annuity.
If the corpus is less than 2.5 lakhs the entire corpus amount can be withdrawn.

Benefits in Tax:- Contribution are eligible for tax saving under section 80 CCD

Interest rate :- Interest Rate in contribution is 9.5 to 10% or market flexibility.

Death Benefits:-

If the minor dies getting before 18 the entire corpus amount will be returned to guardian or parent of minor.
If the guardian or parent of the minor get dead , a new guardian can be registered after completion of fresh KYC process.

Conclusion

The NPS Vatsalya scheme is a good decision taken by government of India in the future of kids and minors, its gave to guardian and minors to secure future and financial strong. The NPS vatsalya scheme also work a life insurance and saving with pension scheme.

FAQ

Q1 :-What is the NPS Vatsalya scheme?

Ans:- its a Pension Cum saving scheme for minors of Indian citizen. sub asset of NPS take care by PFRDA. The contribution in the account by parents or guardian of minor.

Q2:-Who is eligible for the Vatsalya scheme?

Ans:- Minors under the age of 18th and also Indian citizen including NRI.

Q3:-What happens to NPS vatsalya after 18 years?

Ans:- After a minor get 18 or pass 18 the account of NPS Vatsalya will be automatically turn regular NPS account.

Q4:-Which is best, NPS or NPS vatsalya?

Ans:-The NPS Vatsalya scheme is better than NPS as more lump sum amount will be collected while 60.

Q5:-What is the lock-in period under NPS vatsalya?

Ans:-Partially 25% can be withdrawn after contribution of 3 year and after 18 it turned automatically in NPS regular account.