Government has recently launched the National Pension System Vatsalya (NPS Vatsalya) scheme, ‘a pension scheme for minors’.
Eligibility for NPS Vatsalya is as follows:
- All minor citizens (age below 18 years).
- Account can be opened in the name of a minor and operated by a parent or guardian. Minor will be the beneficiary.
- Scheme can be opened through various ‘points of presence’ regulated by PFRDA such as major banks, India Post, Pension Funds and Online platform (e-NPS).
- Subscriber to make a minimum contribution of Rs 1000/- per annum. There is no limit on the maximum contribution.
- PFRDA will provide multiple investment choices to subscribers. Subscribers can take exposure in government securities, corporate debt, and equity in different proportions based on risk appetite and desired returns.
- On attaining the age of majority the plan can be converted seamlessly into a normal NPS account.