NPS Vatsalya — Complete Guide
NPS Vatsalya is a pension scheme launched by the Government of India on September 18, 2024, designed specifically for minors under 18 years of age. Parents or legal guardians can open and operate the account on behalf of the child. The scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). Per the NPS Vatsalya Scheme Guidelines 2025, the minimum contribution is just Rs 250 for account opening and Rs 250 per year, with no maximum limit. Contributions qualify for tax deduction under Section 80CCD(1B) up to Rs 50,000. The subscriber base has grown from 1.07 lakh in March 2025 to over 4 lakh by August 2026, showing strong adoption. When the minor turns 18, the subscriber can continue in the scheme till age 21, shift the corpus to a regular NPS account, or exit (with 80% lump sum + 20% annuity if corpus is Rs 8 lakh or more; full withdrawal if less). This complete guide covers everything you need to know about NPS Vatsalya — from opening an account to withdrawal rules.
Formula
Min contribution: Rs 250/year (account opening: Rs 250) Tax benefit: Rs 50,000 under 80CCD(1B) Exit at 18: Continue till 21, shift to NPS, or exit If corpus < Rs 8L: full withdrawal If corpus >= Rs 8L: 80% lump sum + 20% annuity
Example
If you contribute Rs 50,000/year for 18 years at 10% return: Total invested: Rs 9,00,000 Estimated corpus: Rs 25,00,000+ Tax saved: Rs 15,000/year (30% slab) = Rs 2,70,000 over 18 years At exit (corpus > Rs 8L): 80% lump sum + 20% annuity
How to Use
- Read the complete guide above
- Check eligibility for your child
- Visit eNPS (nps.trust.org.in) or a bank/India Post to open account
- Start contributing annually (min Rs 250)
Frequently Asked Questions
What is NPS Vatsalya?
NPS Vatsalya is a pension scheme for minors under 18, launched on September 18, 2024. Parents or guardians open and operate the account. The minimum contribution is Rs 250/year with no maximum limit. It is regulated by PFRDA.
What is the minimum contribution for NPS Vatsalya?
Per the NPS Vatsalya Scheme Guidelines 2025, the minimum contribution for account opening is Rs 250, and the minimum annual contribution is Rs 250. There is no maximum limit.
Who can open NPS Vatsalya account?
Any Indian citizen under 18 years of age can have an NPS Vatsalya account. NRIs and OCIs are also eligible. The parent or legal guardian opens and operates the account on behalf of the minor.
What are the tax benefits of NPS Vatsalya?
Contributions qualify for tax deduction under Section 80CCD(1B) up to Rs 50,000 per financial year. This is over and above the Rs 1.5 lakh limit under Section 80C.
What happens when the minor turns 18?
At age 18, the subscriber can: (1) continue in NPS Vatsalya till age 21, (2) shift the corpus to a regular NPS account, or (3) exit. If exiting with corpus >= Rs 8 lakh, up to 80% can be withdrawn as lump sum and at least 20% must be used for annuity. If corpus < Rs 8 lakh, full withdrawal is allowed.