Summary of this article
NPS Vatsalya account is for minors that can be converted into NPS account after the age of 18.
NRIs and OCIs are also eligible to open this account.
Similar to NPS, one can take 75 per cent exposure into equity in NPS Vatsalya , too.
The NPS Vatsalya Scheme is for minors (less than 18 years of age). Launched under the NPS structure, it is designed to ensure the financial security of children and imbibe long-term savings habits from a young age. On January 7, 2026, the Pension Fund Regulatory and Development Authority (PFRDA) issued a circular with detailed guidelines for the scheme, superseding its September 18, 2024, circular. It specifies NPS Vatsalya as a specific purpose scheme for minors, which means that any individual subscribing to this scheme will be governed by the guidelines issued by the PFRDA.
Here are the details of the scheme.
NPS Vatsalya
An NPS Vatsalya account can be opened in the name of minors, and after a child turns 18, it can be converted into an NPS Tier I account after submitting fresh KYC and nomination details.
Notably, the account can be opened for resident Indians, non-resident Indians (NRIs), and overseas citizens of India (OCIs) under 18 years of age. After turning 18, the child will be the sole beneficiary of the account.
Account Opening
Parents or legal guardians can open this account for a minor and select a pension fund and a central recordkeeping agency (CRA). They need to provide their KYC documents, PAN or Form 60 declaration, and the minor’s date of birth proof. For NRIs and OCI accounts, the details of the minor’s sole or joint bank account will also be required.
The account can be opened with a minimum of Rs 250 for account opening and annual contribution. No upper limit on contribution amount has been given in the guidelines. Contribution can be made by parents, guardians, relatives, and friends both online and offline.
Only parents or guardians can be the nominee in these accounts.
Investment Guidelines
For NPS Vatsalya Scheme, the guidelines permit pension funds to invest in equity and related investments between 50-75 per cent, in government securities and related instruments between 15-20 per cent, and in debt instruments between 10-30 per cent.
Charges And Fees
The charges are the same as those of the NPS-All Citizens Model at any time. PFRDA stipulate these charges for intermediaries (point of presence, central recordkeeping agency (CRA), pension fund, NPS trust, custodian) for performing their duties and revised charges and fees on October 1, 2025.
Partial Withdrawal
The scheme allows partial withdrawal up to 25 per cent of the total contribution, excluding the returns on the investment, after a three-year lock-in period. Partial withdrawals are allowed for emergencies, such as treatment of specified illnesses of a minor subscriber, the minor’s education, or disability of more than 75 per cent.
Besides, only two partial withdrawals are permitted before the minor turns 18 years of age and two additional withdrawals between 18 and 21 years of age, subject to the completion of KYC requirements.
Exiting The Scheme
After turning 18 years old, subscribers can exit, or can continue under the scheme for up to three years, or shift to the NPS All Citizen Model or any other model applicable. In case of exiting from the scheme:
If the corpus is less than Rs 8 lakh, the subscriber can withdraw the full amount.
If the corpus is more than Rs 8 lakh, the subscriber can withdraw 80 per cent as a lump sum, and the remaining 20 per cent has to be used to buy an annuity.
In case of the subscriber’s death, the accumulated amount will be payable to the nominee or guardian. If the guardian predeceases, another guardian will be registered. In case of the death of both parents, the legally appointed guardian may continue the account.
Grievances Redressal
Facing any grievances regarding the scheme, a parent or guardian can lodge complaints on the Central Grievance Management System (CGMS), and if it is not resolved within 30 days of receiving the application, or if the resolution is not satisfactory, the grievance can be escalated to a higher level.
