NPS Vatsalya

Key Features

Market-linked growth

Funds are invested across equity, corporate bonds & government securities. It has generated up to 14% returns*.

Seamless transition at 18

Account control shifts from you to your child. Options to either continue with NPS or exit with 0 impact on corpus.

Built-in safeguards

Funds protected in all circumstances. New guardian appointed if needed. Corpus intact regardless of family changes.

Partial Withdrawals allowed

Partial withdrawals allowed after 3 years from account opening in case of need like education, medical emergencies etc. Up to 25% of your contribution can be withdrawn.

How does NPS Vatsalya work?

Open account

Guardian opens the account (minimum investment ₹250 /-)

Minor years

Guardian manages the account. Partial withdrawals allowed for specific scenarios like education.

Once the Child turns 18

Option to Continue or Exit the NPS Account (If the accumulated corpus is ₹8 lakh or less, 100% can be withdrawn as a lump sum).

Feature	Rule	Notes
Eligibility	Minor below 18, opened by parent or legal guardian. PRAN issued in child's name.	Guardian manages until child turns 18
Minimum Contribution	₹1,000 per year. No maximum limit.	Flexibility to skip years or increase contribution
Investment Options	Equity, corporate bonds, government securities. Active or Auto choice.	Allocation shifts toward safer assets as child grows
Withdrawals (Before 18)	Allowed after 3 years. Max 25% of contributions. Up to 3 partial withdrawals.	Only for education, medical emergencies, or PFRDA-approved situations
At 18 Years	Continue in Tier-I NPS, stay under Vatsalya until 21, switch model, or exit.	Fresh KYC must be completed within 3 months of turning 18
Exit at 18+	Up to 80% lump sum + 20% annuity. Full withdrawal if corpus ≤ ₹8 lakh.	Standard NPS exit rules apply after transition
Safeguards	New guardian appointed if guardian passes away. Funds protected if minor passes away.	Account continues regardless of family changes

Feature

Rule

Notes

Eligibility

Minor below 18, opened by parent or legal guardian. PRAN issued in child's name.

Guardian manages until child turns 18

Minimum Contribution

₹1,000 per year. No maximum limit.

Flexibility to skip years or increase contribution

Investment Options

Equity, corporate bonds, government securities. Active or Auto choice.

Allocation shifts toward safer assets as child grows

Withdrawals (Before 18)

Allowed after 3 years. Max 25% of contributions. Up to 3 partial withdrawals.

Only for education, medical emergencies, or PFRDA-approved situations

At 18 Years

Continue in Tier-I NPS, stay under Vatsalya until 21, switch model, or exit.

Fresh KYC must be completed within 3 months of turning 18

Exit at 18+

Up to 80% lump sum + 20% annuity. Full withdrawal if corpus ≤ ₹8 lakh.

Standard NPS exit rules apply after transition

Safeguards

New guardian appointed if guardian passes away. Funds protected if minor passes away.

Account continues regardless of family changes

When Can You Withdraw?

Partial withdrawals are allowed but conditional — the account is flexible, not casual. The core retirement corpus stays protected.

Higher Education

Access funds to pay for undergraduate or postgraduate degrees at recognized institutions globally.

Medical Treatment

Withdrawals permitted for the treatment of specified critical illnesses for the child.

Exceptional Situations

Provisions for disability (over 75%) or other severe circumstances as per PFRDA guidelines.

Maximum: 25% of accumulated contributions (excluding returns) · Up to 3 partial withdrawals · Only after 3 years from account opening

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Key Features

How does NPS Vatsalya work?

What Is NPS Vatsalya, in Simple Terms?

Rules at a Glance

Is NPS Vatsalya Right for You?

This is for you if...

This is for you if...

When Can You Withdraw?

What Happens
When the Child Turns 18?

Explore more under NPS

NPS Vatsalya

Key Features

How does NPS Vatsalya work?

What Is NPS Vatsalya, in Simple Terms?

Rules at a Glance

Is NPS Vatsalya Right for You?

This is for you if...

This is for you if...

When Can You Withdraw?

What Happens When the Child Turns 18?

Explore more under NPS

What Happens
When the Child Turns 18?