The scheme is available to all Indian citizens who are aged below the age of 18.
Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) under 18 years of age can join the scheme.
Parents or legal guardians can open and manage the NPS Vatsalya account on behalf of the minor.
The Nominees for the account will be either the parent or a guardian, ensuring that they are the point-of-contact for all account related concerns until the child turns 18.
While the parents or guardians manage the account, the child is the sole beneficiary of the NPS Vatsalya account. All contributions, returns and benefits accrued from the scheme will be for the child’s future financial security.
The management rights will only be transferred after the completion of the required KYC process to the subscriber, post completion of 18 years as beneficiary.
Upon transitioning, the features, benefits, and exit norms of the NPS-Tier I for All Citizen Model of NPS will apply.
Operational Framework of the Scheme
The account shall be opened under the scheme by the guardian in the name of the minor, who shall be the sole beneficiary.
The account shall be operated by the guardian for the exclusive benefit of the minor until the attainment of the age of majority (18 years).
Upon the attainment of the age of 18 years, the subscriber shall be required to complete the fresh KYC, furnish nominee(s) details and conform to such other requirements as may be stipulated by the PFRDA. Until such details are furnished and verified in the system, no subsequent transactions shall be allowed till the subscriber attains the age of 21 years, post which the account shall become dormant
Know Your Customer (KYC) norms to be applicable to the guardian and subscriber aged 18 and above shall be in accordance with the KYC norms stipulated by the PFRDA from time to time. In case of court appointed legal guardian, a copy of the court order in respect of the appointment of the Legal Guardian shall be submitted along with the KYC documents.
The details of a minor's bank account or a joint bank account with a minor may also be provided on an optional basis for Indian residents. In case of an NRI/OCI subscriber, the bank account details shall be provided mandatorily.
At the time of partial withdrawal or exit on attainment of the age of 18 years, the minor's bank account or a joint bank account with a minor shall be required.
A unique Permanent Retirement Account Number (PRAN) in the name of the subscriber will be issued by the CRA upon opening of the account.
PFRDA may come out with simplified subscriber onboarding procedure with evolving technology and market dynamics from time to time
