New Delhi:Union Finance Minister Nirmala Sitharaman on Wednesday launched the NPS Vatsalya scheme, which aims to secure children's financial future through a pension account. This scheme was announced during the Budget 2024.
According to The Pension Fund Regulatory and Development Authority (PFRDA), opening an NPS account for children gives them an early advantage in saving for retirement and teaches essential financial skills. It says that with just Rs 1,000 annually, one can introduce children to investing and educate them on money management- earning, saving, and spending wisely.
Eligibility
For this scheme all minor citizens (age till 18 years) are eligible. This saving-cum-pension scheme is regulated and administered by the PFRDA. It will be an account opened in the name of the minor and operated by the guardian, while the minor to be the sole beneficiary.
Where can one open an account?
The NPS Vatsalya account can be opened through a Point of Presence (POPs) registered with PFRDA either in physical mode or online. This includes major banks, India Post, Pension Fund etc. (The list of PoPs is also available on the PFRDA website). For online mode, the online platform (eNPS) of NPS Trust will be there.
Required Documents
- Date of Birth proof of the Minor (Birth certificate, School leaving certificate, Matriculation Certificate, PAN, Passport)
- KYC of the 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)
- Permanent Account Number (PAN) card of the Guardian or Form 60 declaration (Rule 114B)
- NRE / NRO Bank Account (solo or joint) of the minor in case the guardian is NRI / OCI