NPS Vatsalya

Scheme

A saving-cum-pension scheme regulated and administered by the PFRDA.

Eligibility

All minor citizens (age till 18 years).

Operations

• Account opened in the name of minor and operated by Guardian
• Minor to be sole beneficiary

Where to open account

Online Portal - https://bankofmaharashtra.in/national-pension-system (Link will be available from 12/09/2024)

Document required

• KYC of Guardian shall be carried out by submitting Proof of Identity and Address (Aadhaar, Driving License, Passport, Voter ID card, NREGA Job Card, National Population Register)
• Date of Birth proof of the Minor (Birth certificate, School leaving certificate,
• NRE / NRO Bank Account (solo or joint) of the minor in case the guardian is NRI

Contribution

Account Opening contribution: Min Rs. 1,000 /- and Max no limit.
Subsequent contribution: Min. Rs. 1,000 /- p.a. and Max no limit.

Pension Fund Selection

Guardian can choose any one of the Pension Fund registered with PFRDA.

Investment Choices

1. Default Choice: Moderate Life Cycle Fund LC-50 (50% equity)
2. Auto Choice: Guardian can choose Lifecycle Fund - Aggressive LC-75 (75% equity), Moderate LC-50 (50% equity) or Conservative LC-25 (25% equity)
3. Active Choice: Guardian actively decides allocation of funds across Equity (up to75%), Corporate Debt (up to 100%), Government Securities (up to 100%) and Alternate Asset (up to 5%).

Withdrawal, exit and death

• Withdrawal up to 25% of contribution after lock-in-period of 3 years allowed for education, specified _illness and disability. Max three times.
• Upon attainment of age of 18 years, Seamless shift to NPS Tier - I (All Citizen)
• Exit allowed on attainment of 18 years of age
  • Corpus more than Rs. 2.5 lacs: 80% corpus is utilized for purchase of annuity and 20% can be withdrawn as lump sum.
  • Corpus less than or equal to Rs. 2.5 lacs: entire corpus can be withdrawn as a lump sum.
• On death, entire corpus would be returned to the guardian.