NPS Vatsalya Scheme: Benefits, Apply Online Registration, Application Form, Calculator, Download PDF

NPS Vatsalya Scheme: NPS Vatsalya is a financial investment option designed to help parents or guardians save for their minor children’s future. With a minimum annual contribution of just ₹1000 and no maximum limit, it’s a flexible way to build a financial safety net for your child. This investment can provide valuable support until they become financially independent. In this article, we will tell you all the details about NPS Vatsalya Scheme, we will provide you NPS Vatsalya Scheme PDF, we will tell you about NPS Vatsalya Scheme Online Registration, How to apply for NPS Vatsalya Scheme, Full form of NPS Vatsalya Scheme, NPS Vatsalya Scheme Benefits, Advantages. NPS Vatsalya Scheme Calculator is also given below. You can calculate NPS Vatsalya Scheme maturity amount via our calculator. You can also download NPS Vatsalya Scheme Application Form PDF via link given below.

NPS Vatsalya Scheme Features

• Scheme: A saving-cum-pension scheme regulated and administered by the PFRDA.
• Eligibility: All minor citizens (age till 18 years).
• Operations:
  1. Account opened in the name of minor and operated by Guardian.
  2. Minor to be the sole beneficiary.

NPS Vatsalya Scheme Contribution

• Minimum Rs. 1,000 and no upper limit.
• Subsequent contribution: Minimum Rs. 1,000 per annum and no upper limit.

NPS Vatsalya Scheme Withdrawal, Exit and Death

• Withdrawal up to 25% of contribution after a lock-in period of 3 years allowed for education, specified illness, and disability. Maximum three times.
• Upon attainment of age of 18 years, seamless shift to NPS Tier – I (All Citizen).
• Exit allowed on attainment of 18 years of age:
  1. Corpus more than Rs. 2.5 lakh: 80% of the corpus is utilized for the purchase of annuity and 20% can be withdrawn as a lump sum.
  2. Corpus less than or equal to Rs. 2.5 lakh: Entire corpus can be withdrawn as a lump sum.
• On death, the entire corpus would be returned to the guardian.

How to open NPS Vatsalya Account?

1. NPS Vatsalya account can be opened through Points of Presence (POPs) which include major banks, India Post, Pension Funds, etc.
2. Online platform (e-NPS).

Documents Required for NPS Vatsalya Scheme:

1. KYC of Guardian by submitting Proof of Identity and Address (Aadhaar, Driving License, Passport, Voter ID card, NREGA Job Card, National Population Register).
2. Date of Birth proof of the Minor (Birth certificate, School leaving certificate, Matriculation Certificate, PAN, Passport).
3. NRE/NRO Bank Account (solo or joint) of the minor if the guardian is NRI.

NPS Vatsalya Scheme Pension Fund Selection

• Guardian can choose any one of the Pension Funds registered with PFRDA.

Investment Choices for NPS Vatsalya Scheme

1. Default Choice: Moderate Life Cycle Fund – LC-50 (50% equity).
2. Auto Choice: Guardian can choose Lifecycle Fund – Aggressive – LC-75 (75% equity), Moderate LC-50 (50% equity), or Conservative LC-25 (25% equity).
3. Active Choice: Guardian actively decides allocation of funds across Equity (up to 75%), Corporate Debt (up to 100%), Government Securities (up to 100%), and Alternate Asset (up to 5%).

Who Can Open an NPS Vatsalya Account?

The NPS Vatsalya scheme is available to all parents and guardians, including Indian citizens, NRIs, and OCIs. This means you can secure your child’s financial future through this scheme regardless of where you are based.

Applications for the NPS Vatsalya Scheme will likely be available through the official eNPS website. Stay updated on the site for details on how to apply.

Benefits of the NPS Vatsalya Scheme

• Long-Term Growth: By starting the account while your child is still a minor, you can accumulate substantial savings by the time they retire.
• Early Savings Habits: The scheme encourages children to develop strong saving habits from an early age.
• Easy Account Conversion: When your child turns 18, their NPS Vatsalya account can be seamlessly converted into a standard NPS account, allowing them to build a robust retirement fund throughout their life.

Investment choices in NPS Vatsalya

Guardians can select a PFRDA-registered pension fund for the minor’s NPS Vatsalya account. The scheme offers a variety of investment options:

• Default choice: Moderate Life Cycle Fund (LC-50) where 50% of the investments go into equities.
• Auto choice: Guardians can select from different life cycle funds:
  • Aggressive LC-75 (75% equity)
  • Moderate LC-50 (50% equity)
  • Conservative LC-25 (25% equity)
• Active choice: Guardians can actively decide how to allocate funds across different categories:
  • Equity (up to 75%)
  • Corporate debt (up to 100%)
  • Government securities (up to 100%)
  • Alternate assets (up to 5%)

Download NPS Vatsalya Form PDF

• Download NPS Vatsalya Form PDF
• Calculators

How to Use the NPS Vatsalya Calculator?

Follow these simple steps to use the calculator:

1. Enter your child’s date of birth to determine their current age.
2. Input the monthly contribution amount and the expected annual return rate.
3. Set the desired retirement age and the percentage of the corpus allocated for annuity.
4. Click “Calculate” to view the estimated monthly annuity and lump sum amount.