Step-by-Step Guide to Enroll in the NPS Vatsalya Scheme for Your Child

Step-by-Step Guide to Enroll in the NPS Vatsalya Scheme for Your Child

Planning for your child’s future goes beyond education or savings. It’s about setting a financial foundation that grows over time, and that’s exactly what the NPS Vatsalya Scheme offers. This government-backed investment plan for children, under the National Pension System (NPS), allows you to start a pension scheme for your child at an early age. Thus, ensuring they have a secure financial future.

In this guide, we’ll explain everything you need to know about NPS for minors, how to open an account, and why it’s one of your child's smartest long-term investment strategies.

What is the NPS Vatsalya Scheme?

The NPS Vatsalya Scheme is a unique extension of the regular NPS Tier I account, specially designed for minors. Parents or legal guardians can open this account on behalf of children under 18 years of age. Once the child reaches adulthood, the account automatically transitions into a standard NPS account with all features intact.

This pension scheme for children combines flexibility, government oversight, and the power of compounding, making it ideal for early retirement planning for kids.

Benefits of NPS for Minors

Opening an NPS account early allows parents to build a sizable corpus for their child's future. Here’s why this plan is highly beneficial:

  • Long-term savings scheme for children: Small contributions over the years turn into a significant retirement fund.
  • Tax benefits under Section 80 CCD: Parents or guardians can claim deductions for the contributions made towards this NPS scheme for minors
  • Market-linked returns: With exposure to equities and debt, your child benefits from long-term capital growth.
  • Government-regulated and secure: NPS is managed by experienced pension fund managers under PFRDA.

Who Can Open an NPS Vatsalya Account?

Only a parent or legal guardian can open this pension scheme for a minor. The child must be under 18 years of age at the time of enrollment. Upon reaching 18, the account transitions to a full-fledged NPS Tier I account after completing a simple re-KYC.

How to Open NPS Vatsalya Account Online

Here are the steps to enroll for an NPS account for minors:

1. Visit the Official eNPS Portal

Start by visiting https://enps.nsdl.com and select the “NPS Vatsalya” option. You can also apply offline at designated Points of Presence (banks, post offices, etc.).

2. Fill in Guardian’s Details

Provide:

  • Full Name
  • PAN Number
  • Mobile Number and Email (for OTP verification)
  • Address and ID proof

This ensures proper linkage and verification of the account holder.

3. Enter Minor’s Details

You will need to submit:

  • Full Name
  • Date of Birth
  • Gender
  • Address Proof and documents required for NPS Vatsalya like the child’s birth certificate

Ensure that the details are accurate to avoid any processing issues.

4. Make the Initial Contribution

The account requires a minimum contribution of ₹1,000. There’s no cap on maximum contributions, offering flexibility to plan based on your financial capability.

5. Choose the Investment Strategy

Select between:

  • Auto Choice (LC-75, LC-50, LC-25) – Automatically adjusts asset allocation with age
  • Active Choice – Manually allocate funds across Equity (up to 75%), Government Bonds, Corporate Debt, and Alternate Assets

This allows for a tailored approach to suit your child’s future needs and risk appetite.

6. Generate the PRAN

Once all information is verified and payment is made, a Permanent Retirement Account Number (PRAN) is generated for the child. This becomes the unique ID for all NPS transactions moving forward.

What Happens to the NPS account when the Child Turns 18?

When the minor reaches 18 years of age, the account transitions into a standard NPS Tier I account. A re-KYC is required within three months. The child can then start managing the account independently, benefiting from the investments made during their early years.

Why NPS Vatsalya is the Best Child Future Investment Plan

Most traditional child investment plans focus on education or marriage, but few consider retirement planning for minors. The NPS Vatsalya Scheme fills that gap. It encourages a disciplined saving habit and ensures that your child enters adulthood with a robust financial base.

Here’s why this scheme stands out:

  • It’s a low-cost, government-regulated plan
  • Offers PRAN generation for minors with online access
  • Allows both auto and active investment strategies
  • Ensures continuity of savings even after the child turns 18

Whether you’re comparing it with PPF, Sukanya Samriddhi Yojana, or ULIPs, NPS Vatsalya wins on flexibility, returns, and transparency.

Frequently Asked Questions about NPS Vatsalya Scheme

Can I open more than one account under NPS Vatsalya for the same child?
 No, only one account is permitted per child under NPS guidelines.

Is NPS Vatsalya better than regular fixed deposits or mutual funds?
 For long-term goals like retirement, NPS offers more tax benefits, professional fund management, and regulated returns.

How to track NPS investment options India for my child?
 You can monitor the account through the NSDL portal or by logging into the eNPS website with the PRAN.

Subtle Promotion – Why Choose Bank of Maharashtra?

When it comes to choosing the right Point of Presence (PoP) for enrolling in the NPS Vatsalya Scheme, trust matters. Bank of Maharashtra is a reputed public sector bank that offers:

  • Seamless online registration support
  • Personalised guidance on choosing the right investment options
  • Competitive service charges and a transparent process

With its strong branch network and customer-first approach, Bank of Maharashtra makes it easier for you to open and manage your child's NPS account without hassle.

Conclusion

Investing in your child’s future is more than just savings — it’s about building a financially secure foundation that supports them throughout life. The NPS Vatsalya Scheme is not just a retirement plan, but a gift of financial independence.

Start your child’s journey toward long-term security today. Whether online or by visiting your nearest Bank of Maharashtra branch, the right time to begin is now.

Author: Bank of Maharashtra
Date of Publish: 22 Apr, 2025

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