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PFRDA issues guidelines for NPS Vatsalya, a pension scheme for minors launched in FY 2024-25. Parents or guardians manage accounts.
NPS Vatsalya guidelines 2025: Step-by-step guide for parents
The Pension Fund Regulator and Development Authority (PFRDA) has issued guidelines regarding NPS Vatsalya scheme, a pension and long-term savings scheme for minors (below 18 years).
“NPS Vatsalya” Scheme was launched by the Finance Minister in the Union Budget of FY 2024-25 as a plan for contribution by parents and guardians for minors, marking a significant advancement in financial planning and setting a new standard for prudent financial management from a young age.
Parents or legal guardians can open and manage NPS Vatsalya account for the child. It is aimed at building saving habits and securing the child’s future.
Who Is Eligible?
Any child who is below 18 year can is eligible to have an NPS Vatsalya account. This scheme is also available for NRIs and OCIs.
There’s a requirement in the scheme that the child must be only beneficiary.
The minimum contribution required is Rs 250 per year. Contributions can be made by parents, relatives, or even friends through online or offline modes.
Investments under NPS Vatsalya are tilted towards long-term growth:
- 50–75% in equity
- 15–20% in government securities
- 10–30% in debt instruments
This higher equity exposure is aimed at wealth creation over the long term
Withdrawal rules before 18
Partial withdrawals are allowed only for specific needs such as:
- Education
- Treatment of serious illnesses
- Disability above 75%
Withdrawals are permitted after three years from account opening, limited to 25% of total contributions, and capped at two withdrawals before the child turns 18 .
What happens after the child turns 18?
After attaining majority, the subscriber must complete fresh KYC.
They can then choose to:
- Shift fully to the regular NPS (All Citizen Model)
- Withdraw up to 80% as a lump sum and invest the rest in an annuity
- Withdraw the full amount if the total corpus is below Rs 8 lakh
- If no option is chosen by age 21, the account is automatically shifted to a high-risk equity option under NPS rules
Online Account Opening (eNPS Portal)
The online process is the quickest way to open the account and involves the following steps:
- Visit the official eNPS portal and navigate to the “NPS Vatsalya (Minors)” registration section.
- Enter Guardian’s Details: Provide your full name, PAN, mobile number, email ID, and date of birth for OTP verification.
- Verify KYC: The system will verify your details using your Aadhaar or DigiLocker information.
- Enter Minor’s Details: Fill in the child’s details, including full name, date of birth, and gender.
- Upload Documents: Upload scanned copies of the required documents (4KB-2MB size limit for some documents).Make Initial Contribution: Make the initial payment of a minimum of Rs 1,000.
- Choose Investment Strategy: Select a Pension Fund Manager (PFM) and an investment option (Auto Choice or Active Choice).
- Complete Authentication: Authenticate the application using e-Sign or dual OTP authentication.
- PRAN Generation: A unique Permanent Retirement Account Number (PRAN) will be generated for the minor upon successful submission and payment.
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January 14, 2026, 3:03 pm IST
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