NPS Vatsalya Scheme: Securing Minors' Financial Future

The NPS Vatsalya scheme, introduced in Budget 2024, aims to financially secure children's futures by encouraging guardians to invest in pension accounts for minors. The scheme is open to Indian citizens and NRIs for their minor children under 18 years old.

Introduction and Launch

Finance Minister Nirmala Sitharaman launched NPS Vatsalya on September 18, 2024
Introduced in Budget 2024 to financially secure children's future
Launch event held in New Delhi, with 75 locations joining virtually
Scheme regulated by Pension Fund Regulatory and Development Authority (PFRDA)
Aims to encourage guardians to invest in pension accounts for minors

Eligibility and Account Details

Open to Indian citizens and NRIs for their minor children (under 18 years)
Legal guardians can also open accounts for minors
Minimum annual contribution of ₹1,000, no upper limit
NPS Tier-II account opened in the minor's name
Permanent Retirement Account Number (PRAN) card issued to enrolled children
Not available for non-resident Indians (NRI) children
Lock-in period of three years

Investment Options and Potential Returns

Default choice: Moderate Life Cycle Fund (LC-50) with 50% equity exposure

Auto choice options:

- Aggressive (LC-75): 75% equity
- Moderate (LC-50): 50% equity
- Conservative (LC-25): 25% equity
Active choice: Customizable allocation with up to 75% equity exposure
Investment options in corporate debt, government securities, and alternative assets

Potential for substantial wealth accumulation:

- Example: ₹10,000 annual investment for 18 years
- Estimated corpus at age 18: ₹5 lakh (10% return)
- Projected corpus at age 60: ₹2.75 crore (10% return) to ₹11.05 crore (12.86% return)
Returns not guaranteed, depend on market performance

Maturity, Withdrawal, and Succession Rules

Account matures when the child turns 18

Options at maturity:

- Continue investing with fresh KYC within three months
- Exit NPS: Reinvest 80% in annuity, withdraw 20% as lump sum
- Full withdrawal if corpus is less than ₹2.5 lakh

Partial withdrawal rules:

- After 3 years, up to 25% of corpus allowed for specific purposes
- Maximum of three partial withdrawals before turning 18

Death and succession:

- If subscriber dies, entire corpus returned to registered nominee (guardian)
- If guardian dies, new guardian can be appointed with fresh KYC
- If both parents die, legal guardian can continue or pause contributions until child is 18

New Governors of India 2025

On July 14, 2025, President Droupadi Murmu appointed new State Governors for Haryana, Goa, and a new Lieutenant Governor for Ladakh, bringing notable changes to India's constitutional framewor

Sanchar Mitra Scheme 2025

The Sanchar Mitra Scheme is a flagship initiative launched by the Department of Telecommunications (DoT), Government of India, designed to promote telecom awareness, digital literacy, and responsi

PARAKH Assessment 2025 Report of Education

The PARAKH Assessment 2025 (Performance Assessment, Review, and Analysis of Knowledge for Holistic Development Rashtriya Sarvekshan) has brought forth key insights into India’s school educat

ISRO Tests Gaganyaan Propulsion Module

On July 3, 2025, the Indian Space Research Organisation (ISRO) achieved a major milestone by successfully testing the Gaganyaan propulsion system at the ISRO Propulsion Complex in Mahendragiri, Ta

India-Brazil $20 billion Trade Target

During his official visit to Brazil on July 9, 2025, Prime Minister Narendra Modi set a bold goal of achieving the India-Brazil $20 billion trade target by 2030, up from the current $12.2 billion.

UAE Golden Visa 2025 Scheme

Launched by the United Arab Emirates (UAE) in 2025, this visa scheme offers lifetime UAE residency to residents of India and Bangladesh, without requiring any investment in property or business.

India Merchandise Exports vs Services

India's merchandise exports have undergone a significant transformation in recent years. Traditionally known for shipping physical goods like textiles and minerals, India's merchandise exp

Mega GNIP Andaman Nicobar Project

The GNIP Andaman Nicobar (Great Nicobar Infrastructure Project) is a ₹72,000 crore island project announced by the Indian government. It involves large-scale development on Great Nicobar Island,

India's CSIR IGIB Biobank

India has taken a historic step in scientific innovation with the inauguration of the CSIR IGIB Biobank at the Institute of Genomics and Integrative Biology (IGIB), under the Council of Scientific

TB Mortality Causes in India

Puducherry has become the first Union Territory in India to integrate TB screening into the Family Adoption Programme, a major initiative in India’s ongoing war against tuberculosis (TB). Th