NPS Vatsalya Scheme 2025 is a new government plan to help you save money for your child’s future. This special scheme is made just for children so they can have money when they grow older and retire. You, as a parent or guardian, can open an account for your minor child and save regularly. This gives your child a strong start for their financial life.
With this scheme, your child will get a special pension account and a PRAN card. You can start saving from now with only ₹1,000 per year. There is no limit on how much you can save. When your child completes the 20th installment, the account will become a regular pension account under NPS (National Pension System). This way, your child will already be ready with retirement savings.
NPS Vatsalya Scheme 2025 – All Details at a Glance
| Name | NPS Vatsalya Scheme 2025 |
| Launched By | Government of India |
| Announced By | Finance Minister Nirmala Sitharaman |
| Regulator | Pension Fund Regulatory and Development Authority (PFRDA) |
| Who Can Open Account? | Parents or guardians of children below 18 years |
| Who Can Benefit? | Minors below 18 years with PAN card |
| Minimum Yearly Contribution | ₹1,000 |
| Maximum Contribution | No limit |
| Interest Rate | 9.5% – 10% p.a. |
| Withdrawal Rules | – 25% of the contributed amount can be partially withdrawn. – Upon reaching 18 years, the account can transition to a standard NPS account. |
| Account Maturity | After the 20th installment |
| Tax Benefits | Contributions eligible for an additional deduction of up to ₹50,000 under Section 80CCD(1B) (only applicable under the old tax regime) |
| Investment Options | Default (LC-50), Auto (LC-75, LC-50, LC-25), Active (Custom mix) |
| Partial Withdrawal | Up to 25% after 3 years (max 3 times) |
| Exit Conditions | Above ₹2.5 lakh – 80% annuity, 20% lump sum; Up to ₹2.5 lakh – full withdrawal |
| Service Locations | Available in 75+ centres and online |
| Official Website | enps nsdl Portal |
What is NPS Vatsalya Scheme?
The Finance Minister of India, Nirmala Sitharaman, introduced the NPS Vatsalya Scheme to support children’s retirement planning. This scheme is a version of the National Pension System (NPS) but made especially for minors.
NPS is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and offers several benefits including tax savings. Parents or legal guardians can open an NPS account for kids under 18 years of age. Once the child turns 18, the account automatically changes into a regular NPS account, making it easy for young adults to continue their savings.
Your child will get a Permanent Retirement Account Number (PRAN) card after registration. This card is important for managing their pension savings in the future.
How to Online Apply NPS Vatsalya Scheme
STEP 1: To join, go to the official eNPS site and click on “REGISTER NOW” under “NPS Vatsalya (Minors)”.
STEP 2: Type your PAN, date of birth, mobile number and email. Click on “BEGIN REGISTRATION”.
STEP 3: Fill in the details of your child and upload the documents like Aadhaar, PAN, date of birth proof, and your signature.
STEP 4: Submit the form. Once it is accepted, you will receive a PRAN card in the name of the child.
Features of the NPS Vatsalya Scheme
- Special savings scheme only for minor children
- Parents or guardians can open the account
- Minimum saving is ₹1,000 yearly, no upper limit
- Extra ₹50,000 tax deduction under Section 80CCD(1B) (old tax regime).
- PRAN card issued in child’s name
- Account becomes regular NPS after 20th installment
- Partial withdrawal allowed for child’s education, illness, or disability after 3 years
- Available online and at banks or India Post
- NRIs and OCI can also open accounts for their children
NPS Vatsalya Yojana Eligibility
- Child must be under 18 years of age
- Child must have a valid PAN card
- Account must be opened by a parent or legal guardian
- Guardian must be Indian resident or NRI/OCI
- KYC documents required: Aadhaar, DOB proof, address proof, guardian’s signature
Documents Required for to Open NPS Vatsalya Scheme
- Aadhaar & PAN – Mobile-linked Aadhaar or DigiLocker Aadhaar and PAN of parent/guardian.
- Minor’s Age Proof – Birth certificate, school leaving certificate, matriculation certificate, PAN, or passport.
- Guardian’s Signature – Scanned copy of the parent/guardian’s signature.
- Payment Readiness – Ensure active UPI or Internet Banking for payments.
- File Size Limit – Scanned documents must be between 4KB and 2MB.
- Bank Account Details
NPS Vatsalya Scheme – Benefits
- NPS Vatsalya helps you start saving for your child from a young age. It teaches the importance of saving money regularly.
- By putting money early in this scheme, your child can grow a good amount of savings for their future retirement.
- This scheme turns into a normal NPS account once your child becomes an adult. It continues to grow and keeps their future financially safe.
- It’s not just about saving. This plan also teaches your child how to use and manage money wisely as they grow up.
- NPS Vatsalya gives you a step-by-step way to secure your child’s future and build strong savings over time.
NPS Vatsalya Scheme Investment Choices:
- Default Choice: Moderate Life Cycle Fund – LC-50 (50% equity).
- Auto Choice: The guardian can select one of the following options:
- Aggressive LC-75 (75% equity)
- Moderate LC-50 (50% equity)
- Conservative LC-25 (25% equity)
- Active Choice: The guardian can decide the fund allocation across:
NPS Vatsalya Scheme Withdrawal Options:
- After 3 years, withdraw up to 25% for education, treatment or disability
- Max 3 times allowed
- If total savings > ₹2.5 lakh: 80% must go to annuity, 20% can be withdrawn
- If savings ≤ ₹2.5 lakh: Full withdrawal allowed
- In case of child’s death, full amount is given to guardian/nominee
NPS Vatsalya vs Sukanya Samriddhi Yojana
| Feature | NPS Vatsalya Scheme 2025 | Sukanya Samriddhi Yojana (SSY) |
|---|---|---|
| Who Can Apply? | Parents/Guardians of children (boys or girls) below 18 years | Parents/Guardians of girl child only (below 10 years) |
| Gender Eligibility | Both boys and girls | Only girl child |
| Minimum Contribution | ₹1,000 per year | ₹250 per year |
| Maximum Contribution | No upper limit | ₹1.5 lakh per year |
| Account Maturity | After 20th installment (child becomes adult) | 21 years from account opening or at marriage (after 18) |
| Partial Withdrawal | Up to 25% after 3 years for education/illness/disability (max 3 times) | Up to 50% after girl turns 18, for education or marriage |
| Interest Rate | Market linked (based on fund performance) | Fixed rate decided by government (currently ~8.2% annually) |
| Tax Benefit (under 80C) | Up to ₹1.5 lakh per year | Up to ₹1.5 lakh per year |
| Tax on Maturity | Partially taxable (annuity income is taxable) | Fully tax-free (EEE benefit) |
| Account Type | Pension savings for child | Small savings for girl’s future/marriage/education |
| PRAN Card | Yes, issued after registration | No |
| Regulating Authority | PFRDA (Pension Fund Regulatory and Development Authority) | Department of Posts / Ministry of Finance |
| Investment Options | Equity, debt, govt bonds (Auto/Active choices) | Government fixed-income scheme |
| Can NRIs Apply? | Yes (for their children) | No |
Helpline & Contact Information:
If you have any doubts or need help, contact:
- Office Address: Protean e-Gov Technologies Limited, 1st Floor, Times Tower, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013
- Phone: (022) 2499 3499
- Toll-Free: 1800 2100 080 (for registered users)
Also Read: Education Loan e Voucher Scheme
FAQs
What is the goal of the NPS Vatsalya Scheme 2025?
To help parents save money early for their child’s retirement and future needs.
Who can open the account?
Only parents or legal guardians can open it for children under 18.
How much money do I need to start?
Just ₹1,000 per year is needed to start saving under the scheme.
When will the account change to a regular NPS account?
After the child completes the 20th installment, the account will become a normal Tier-1 NPS account.
This is a great way to plan your child’s secure future. Start now and give your child a stress-free tomorrow!