Children who join the scheme will receive a PRAN card (Permanent Retirement Account Number).

NPS Vatsalya: 9,705 minors sign up on Day 1. Here's how to invest for your child?

The scheme, overseen by the Pension Fund Regulatory and Development Authority (PFRDA), is part of the National Pension System (NPS) and aims to help parents and guardians begin retirement savings for their children from an early age

by · India Today

In Short

  • NPS Vatsalya launched on September 18, 2024
  • Scheme aims at early retirement savings for children
  • Over 2,197 accounts opened via e-NPS portal

The NPS Vatsalya scheme, launched on September 18, 2024, by Union Finance Minister Nirmala Sitharaman, attracted 9,705 minor subscribers on its first day.

The scheme, overseen by the Pension Fund Regulatory and Development Authority (PFRDA), is part of the National Pension System (NPS) and aims to help parents and guardians begin retirement savings for their children from an early age.

According to PFRDA, the NPS Vatsalya scheme received an overwhelming response. Of the 9,705 minor subscribers who signed up on Day 1, 2,197 accounts were opened through the e-NPS portal alone.

The launch event was streamed live on the Ministry of Finance and PFRDA's YouTube channels, drawing over 15,723 views.

As part of the enrolment process, children who join the scheme will receive a PRAN card (Permanent Retirement Account Number), just like adult subscribers to the NPS.

What is NPS Vatsalya?

NPS Vatsalya is a government-backed initiative aimed at encouraging long-term savings for minors in India.

Like the National Pension System, the scheme is designed to help parents, legal guardians, and even Non-Resident Indians (NRIs) secure the financial future of their children by building a retirement fund over time.

By starting early, parents can take advantage of the power of compounding, making it easier to accumulate wealth over the years.

The scheme is accessible to all Indian citizens, and legal guardians can open NPS Vatsalya accounts for their minor children. This offers a valuable opportunity for financial planning and helps parents establish a foundation for their children's future financial security.

How to start investing in NPS Vatsalya?

Opening an NPS Vatsalya account is straightforward and can be done online or through registered Points of Presence (PoPs). Here’s how you can start:

Online process - The simplest way to open an NPS Vatsalya account is through the e-NPS platform, which streamlines the process and allows for quick contributions.

  1. Visit the NPS website: Go to the official National Pension System (NPS) website or the dedicated NPS Vatsalya platform.
  2. Click 'Register': On the homepage or the designated section for NPS Vatsalya, click the 'Register' button to start the process.
  3. Fill in required details: Enter all the necessary information, including details about the minor and the legal guardian.
  4. Make an initial contribution: Once the account is set up, make an initial deposit of Rs 1,000. After this, the PRAN (Permanent Retirement Account Number) will be generated, officially opening the NPS Vatsalya account under the minor’s name.

Offline process - Alternatively, you can open an NPS Vatsalya account through a registered Point of Presence (PoP), which includes major banks, India Post, Pension Fund companies, and other authorised entities. This can be done either in person or through their online platforms.

A complete list of PoPs can be found on the PFRDA’s official website, www.pfrda.org.in.

Documents needed for opening account

Whether applying online or offline, you will need to provide the following documents to open an NPS Vatsalya account:

  1. Proof of Date of Birth: Valid documents include a birth certificate, school leaving certificate, matriculation certificate, PAN card, or passport of the minor.
  2. KYC for Guardian: The guardian must submit proof of identity and address, such as Aadhaar Card, driving license, passport, voter ID card, or NREGA job card.
  3. Bank Account Details: If the guardian is an NRI, they will need to provide details of a Non-Resident External (NRE) or Non-Resident Ordinary (NRO) bank account held specifically for the minor (either solo or joint).
  4. Scanned copies for NRIs/OCI subscribers: NRI and OCI subscribers will need to provide scanned copies of their passport, foreign address proof, and bank proof.