NPS Vatsalya
NPS Vatsalya is a specialized variant of the National Pension
System (NPS) designed for children below 18 years of age. The
account is opened in the child’s name and operated by a parent
or legal guardian until the child reaches the age of 18. By
starting investments early, the child benefits from the power
of long-term compounding, helping build a strong financial
foundation for the future.
Upon attaining the age of 18, the NPS Vatsalya account is
seamlessly converted into a regular NPS account, ensuring
uninterrupted retirement planning and long-term wealth
creation.
Key Benefits of NPS Vatsalya Scheme:
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Helps parents and guardians secure the financial future
of their children from an early age.
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Offers tax benefits on contributions, encouraging
disciplined savings.
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Contributions can start from as low as ₹250, making it
accessible to all families.
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Partial withdrawal facility:
Up to 25% of own contributions can be withdrawn for
education, medical needs, or emergencies (twice between
ages 0–18 and twice between 18–21).
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On attaining 18 years, the subscriber can continue the
scheme till 21 years or exit with up to 80% of the corpus
as lump sum and at least 20% invested in annuity. Full
withdrawal is allowed if the total corpus is below ₹8 lakh.
