NPS Vatsalya Scheme: Eligibility, Benefits, Features, How to Apply

12^th Jan 2026...

Published By : Team 811

NPS Vatsalya Scheme Latest News

The scheme is managed by the Pension Fund Regulatory and Development Authority (PFRDA) and is still open for minor children to join.
From FY 2025 to 26, contributions get an extra tax benefit up to ₹50,000 under Section 80CCD(1B).
The latest official update confirms that all scheme rules are still valid.

NPS Vatsalya Scheme Key Takeaways

Vatsalya scheme lets parents or legal guardians open a pension-cum-savings account for minors under the National Pension System framework.
Minimum yearly contribution is just ₹1,000. But there is no upper limit, offering flexibility according to one’s means.
After the child turns 18, the account converts into a regular NPS Tier-I account. A fresh KYC is required within three months of the majority.
Money invested in NPS Vatsalya gives tax benefits under Section 80C/80CCD(1), plus an extra deduction under Section 80CCD(1B) from FY 2025 to 26. It makes it a tax-smart saving option.

Ensuring financial security for children is among the most important goals for parents. The Government of India, through PFRDA, launched the NPS Vatsalya scheme to allow parents or guardians to build a retirement-cum-savings corpus for their children from an early age. By combining the flexibility of market-linked investments under NPS with the advantage of early compounding, NPS Vatsalya encourages disciplined savings and long-term financial planning.

What is the Vatsalya Scheme

NPS Vatsalya is a contributory pension scheme under the larger National Pension System (NPS), specifically designed for minors. A parent or legal guardian opens the account in the child’s name and handles all contributions until the child becomes an adult. Once the child turns 18, the account automatically becomes a regular NPS Tier-I account and the child takes full control after completing a fresh KYC.

The idea is to help cultivate long-term savings habits early, offering the child a secure financial cushion when they grow up.

Who Benefits from the Vatsalya Scheme

The NPS Vatsalya scheme is helpful for parents or guardians who want to start investing early for their child’s long-term future. It is meant for minors who are Indian citizens (including NRIs/OCI minors in certain cases) and whose guardians can fulfil the account opening requirements. Families seeking a low-entry yet flexible savings plan that benefits from market-linked growth, disciplined investments and tax benefits.

Key Features & Benefits of NPS Vatsalya Scheme

Vatsalya scheme helps parents build long-term savings for their child with low contributions and simple investment options. The features include:

Low Entry Barrier: Minimum contribution as low as ₹1,000 per annum.
Flexible Contributions: No upper limit. You can contribute as per your financial capacity.
Investment Choices: Guardians can choose between “Default / Auto Choice” or “Active Choice” for fund allocation.
Long-Term Growth: The account benefits from compounded returns over many years. It gives the child a robust corpus by adulthood.
Tax Advantages: Contributions are eligible for tax deduction under Section 80C/80CCD(1) and additional deduction under Section 80CCD(1B) from 2025 to 26.
Seamless Transition: On turning 18, the account converts into a regular NPS Tier-I with the same PRAN, making retirement savings continuous.
Flexible Investment Options: Guardians can choose the investment mix that aligns with the child's goals and risk appetite.

Kotak811 offers a zero-balance digital savings account that helps parents easily manage NPS Vatsalya contributions and track their child’s savings from home. Reach out to us for any support you need.

NPS Vatsalya Scheme Eligibility Criteria

The applicant must be a minor at the time of opening the account and should be a citizen of India.
The account must be opened by a parent or legal guardian.
The guardian must comply with KYC norms as laid out by PFRDA (identity, address proof etc.).
For NRIs/OCIs as guardians, additional documentation may be required.

Exclusions

The scheme is not for adults. Only minors are eligible.
The account is operated by the guardian until the child turns 18. The minor does not have direct control over the account.
Guardians must ensure valid KYC. In case of court-appointed guardians, a copy of the court order must be submitted.
While contributions are flexible, partial withdrawal rules and exit norms are stricter.

Documents Required for Vatsalya Yojana

To open an NPS Vatsalya account, the following are required:

For the minor:

Proof of Date of Birth

For the guardian:

KYC Documents
Signature

For NRI/OCI guardians:

Passport
Foreign Address Proof
Bank Proof
NRE/NRO Bank Account

Application Process of NPS Vatsalya Scheme

The application process for the Vatsalya yojana is possible both online and offline.

Vatsalya Scheme Online Process

Registration: Visit the eNPS website and select “NPS Vatsalya (Minors)”. Click “Register Now” and enter the guardian’s basic details like PAN, mobile number and email. Verify using the OTP.
Application: Fill in the minor’s details, upload the required documents, choose the investment option and Pension Fund Manager and make the minimum contribution of ₹1,000.
Verification: Complete the e-sign or Aadhaar OTP verification. Once approved, you will receive the PRAN (Permanent Retirement Account Number).

Vatsalya Scheme Offline Process

Registration: Visit a nearby Point of Presence (PoP) such as a bank or a PFRDA-registered centre and collect the NPS Vatsalya form.
Application: Fill in the form and submit it with the required documents for the minor and guardian. Make the initial contribution of ₹1,000.
Verification: The PoP checks your documents and processes your application. After approval, your PRAN is issued.

Check Status of The Vatsalya Scheme

You can check the status of NPS Vatsalya both online through the eNPS portal or offline by visiting the PoP where you applied.

Checking Status Through eNPS

Visit the official eNPS website.
Log in using your PRAN or the mobile number used during registration.
After logging in, you can see your application status.

Checking Status Offline Through PoP

Visit the Point of Presence (PoP) where you submitted your form.
Share your PRAN, mobile number or application reference number.
The staff will tell you if your application is approved, under verification or if they need more documents.

Benefit Disbursal for NPS Vatsalya Scheme

Once the withdrawal is approved, the NPS amount is credited directly to the applicant's or guardian’s bank account. If it is a maturity withdrawal, the eligible amount is paid and the remaining part is used to start the pension.
If the subscriber (minor) passes away, the accumulated amount is paid to the nominee or legal heir, after submitting the required documents like ID proof and the death certificate.
Every update is shared through SMS, email and is also shown on the NPS portal.

Conclusion

Vatsalya scheme offers parents and guardians a simple, flexible and tax-efficient way to build a savings corpus for their children, starting as early as infancy. By using the power of long-term investing and compounding, the scheme can help children carry a financial cushion into adulthood.

FAQs on NPS Vatsalya Scheme

1. Who can open an NPS Vatsalya account?

Any Indian minor can be the subscriber. The account must be opened by a natural parent or a legal guardian.

2. What happens when the minor turns 18?

The Vatsalya scheme account transitions automatically into a regular NPS Tier-I account. The now-adult must complete fresh KYC within three months.

3. Who manages the funds of the Vatsalya scheme?

The investments are managed by PFRDA-registered pension fund managers. Guardians choose the fund manager and investment option at the time of account opening.

4. How do I open the account?

You can open the account online via the eNPS portal of NPS Trust or offline via a bank, India Post or other authorised Point of Presence (PoP). Required KYC documents must be submitted, and the initial contribution should be paid.

5. Can I increase contributions later or make one-time lump sum contributions?

Yes. The scheme allows flexibility. There is no upper cap on annual contributions so that you can increase contributions depending on your capacity.

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Disclaimer
This article is intended for general informational purposes only. The information provided is based on publicly available sources and government notifications as available at the time of writing. Government schemes, eligibility criteria, benefits, coverage limits, and implementation details are subject to change, modification, or discontinuation at the discretion of the respective government authorities without prior notice.
Kotak Mahindra Bank Ltd. (“Bank”) does not guarantee the accuracy, completeness, or current validity of the information contained herein and does not assume any responsibility for discrepancies arising due to subsequent policy updates or revisions. The views expressed in this article do not necessarily reflect the views of the Bank or its employees and should not be construed as legal, medical, financial, or professional advice.
Readers are advised to verify the latest details directly from official government portals or authorized sources before relying on or acting upon the information provided. Kotak Mahindra Bank Ltd., its directors, employees, or contributors shall not be liable for any loss or damage arising from the use of or reliance on the information contained in this article.