- The “NPS Vatsalya” scheme is covered under National Pension System (NPS) under section 12(1)(a) and section 20 of the Pension Fund Regulatory and Development Authority Act, 2013.
- It is a contributory saving cum long-term financial security scheme designed exclusively for minors for the purposes of enhancing financial literacy and financial planning and to encourage empowerment of children, emanating from the vision of "Viksit Bharat@2047.
- The scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) in accordance with the provisions of the PFRDA Act, 2013, regulations and guidelines issued by the Authority.
Definitions
- The “Account” shall mean an individual pension account of a minor opened through a guardian under the “NPS Vatsalya” scheme.
- The “Subscriber” for the purpose of this scheme shall mean a minor for whom the account has been opened under the scheme.
- The “Guardian” shall mean either the parent of a minor or a legal guardian.
- The “Minor” shall mean a person who has not reached the age of eighteen years.
- PRAN” shall mean a unique Permanent Retirement Account Number generated at the time of opening of the account and issued in the name of the subscriber by the CRA
Contributions to the Account
1. Mode of Payment
a. Physical mode: By visiting any registered PoP and depositing a cheque/cash along with the NPS contribution slip.
b. Online facility provided by PoPs
c. eNPS platform of NPS Trust
d. Any other electronic mode approved by PFRDA
2. Limits on contribution
a. Minimum contribution for account opening: ₹250
b. Minimum Annual contribution: ₹250
c. No limit on maximum contribution.
3. Gift Contributions
In addition to Parents/guardians, relatives and friends can gift contributions to the NPS Vatsalya account.