1. What is NPS Vatsalya?
NPS Vatsalya is a contributory pension system under the National Pension System (NPS). Its aim is to nurture a pensioned society by encouraging children to save for retirement early, fostering financial empowerment and discipline.
2. Who can subscribe to NPS Vatsalya?
NPS Vatsalya is available for all Indian citizens under the age of eighteen. The account is managed by a guardian on behalf of the minor.
3) What are the benefits of opening an NPS Vatsalya account?
Opening an NPS Vatsalya account gives a child a head start in retirement savings. It teaches crucial financial skills, planning, and discipline, which are beneficial throughout one's life.
4) How is the NPS Vatsalya account operated?
- The account is opened by a natural or legal guardian in the minor's name.
- The minor is the sole beneficiary.
- A Permanent Retirement Account Number (PRAN) is issued in their name.
- The guardian operates the account for the minor's benefit until they turn 18.
5) What is the procedure for opening an NPS Vatsalya account?
You can open the account via:
Points of Presence (POPs): Registered with PFRDA like major banks, India Post, and Pension Funds. This can be done online, physically, directly, or through Retirement Advisors/Pension Agents.
Online Platform (eNPS): Offered by the NPS Trust or through Protean.
6) What are the KYC requirements for opening an NPS Vatsalya account?
KYC norms must follow PFRDA standards for guardians. If a legal guardian is appointed by the court, a copy of the court order must be submitted along with KYC documents.
For more details, reach out to registered Points of Presence or visit the NPS Trust's online platform.
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You can learn more about NPS by visiting our Blog page.
7) What documents of the minor are required for opening a NPS Vatsalya account?
Proof of date of birth is mandatory. Acceptable documents include:
Birth certificate of the minor
School leaving certificate/matriculation issued by Higher Secondary Board (State Boards, ICSE, CBSE)
Passport of the minor
PAN (You can find all PAN related Quick Links here)
8) Is a bank account required for opening an NPS Vatsalya account?
For Indian residents, bank account details of the minor or a joint account with the minor are not mandatory for opening the account. However, these details will be required at the time of partial withdrawal or exit before the age of 18.
For non-residents, details of an NRE or NRO account are mandatory.
9) What happens when the minor attains the age of 18 years?
- The account will seamlessly transition into an NPS Tier 1 Account under the All Citizen Model.
- The features, benefits, and exit norms of the NPS Tier 1 Account for the All Citizen Model will apply.
- A fresh KYC of the subscriber must be completed within three months of reaching majority. Contributions will be allowed after the fresh KYC submission.
10) Can an NRI or OCI open an NPS Vatsalya account?
- The minor must be a citizen of India.
- The guardian can be a Non-Resident Indian (NRI) or Overseas Citizen of India (OCI).
- A separate form is applicable for guardians who are NRIs or OCIs.
- A bank account (NRE or NRO) is mandatory when the guardian is an NRI or OCI.
11) Is it required to furnish a nomination while joining the scheme?
No, the guardian automatically becomes the nominee under the scheme.
12) How many NPS Vatsalya accounts can I open?
The guardian can open a single account per child for the minor.
13) Can a guardian who is an NPS subscriber open a NPS Vatsalya account for a minor?
Yes, a guardian who is an NPS subscriber can open an NPS Vatsalya account for the minor.
For further inquiries, always refer to the official documentation from PFRDA and NPS Trust or Protean Blogs for the most accurate and up-to-date information.
More FAQ on NPS Vatsalya related to Accumulation under NPS Vatsalya Account
More FAQ on NPS Vatsalya related to partial or full exit from NPS Vatsalya Account
- Story by Bruhadeeswaran R.
