1. Power of compounding along with financial security - Starting early allows money to grow significantly over time through compounding creating a financial cushion for the future.
2. financial discipline: Small, regular investments build a strong habit of saving and planning.
3. Empower your child: Early exposure to saving builds responsible financial behaviour for life.
4. Tax Efficient - Attractive tax benefits under the Income Tax Act, 1961.
5. Optimum Returns - Provides market-linked returns based on pension funds’ performance.
6. Transparent - 24/7 online access to the account, with mandatory public disclosures ensuring transparency.

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

5

a. Date of birth of the minor: Birth Certificate, School Leaving Certificate, Matriculation   Certificate, Permanent Account Number (PAN), or Passport. (Anyone mentioned above)

b. The minor's sole or joint bank account details are optional for resident Indians, while mandatory in case of NRI/OCI.

a. KYC of the guardian: Aadhaar, Driving License, Passport, Voter ID card, National Rural Employment Guarantee Act (NREGA) Job Card, or National Population Register documents. (Anyone mentioned above)

b. PAN of the guardian. 

1. Minimum contribution for account opening: ₹250
2. Minimum Annual contribution: ₹250 
3. No limit on maximum contribution.

Gift Contributions 

In addition to Parents/guardians, relatives and friends can gift contributions to the NPS Vatsalya account.

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%).

1. Partial withdrawal 

• Purpose Education of subscriber, treatment of specified illnesses, and disability more than 75%
• Lock-in Period Minimum 3 years from the date of opening of account.
• Limit Maximum up to 25% of contributions excluding returns.
• Frequency • 0 - 18 years of age – Maximum Two withdrawals
• 18 - 21 years of age – Two additional withdrawals

2. On attaining majority (age of 18 years)

Options between 18 -21

 • Continue to remain in the scheme for up to 3 years (till 21) OR

• Shift the entire accumulated corpus to NPS (All citizen model or other applicable model) post KYC completion OR

• Exit – 

o if total accumulated corpus is < ₹8 lakh → Full withdrawal

o if total accumulated corpus is ≥ ₹8 lakh → Withdraw up to 80% of corpus as lump sum and at least 20% as annuity

If no option is exercised till 21 years of age The account auto-shifts to a higher-equity scheme under MSF. The account shall thereafter be governed by the PFRDA (Exits and Withdrawals under the NPS) Regulations, 2015. 

3. Death of Subscriber/Guardian

Exit due to death • Entire corpus is transferred to the guardian/nominee/legal heir. 

• Option of transferring the proceeds to the NPS account of guardian/nominee/legal heir is also available.