NPS Vatsalya Overview: NPS Vatsalya was formally launched on September 18 for subscribers. Like regular NPS, the new scheme is also a contributory pension plan regulated by the Pension Fund Regulatory and Development Authority (PFRDA). This scheme is specifically designed for minors (up to the age of 18 years), aiming to provide them with a structured savings option for their future.
NPS Vatsalya account opening process:
The quickest way to open an NPS Vatsalya account is through the online platform known as eNPS. This system not only facilitates the initial registration of an NPS Vatsalya account but also allows for subsequent contributions, making the process efficient and user-friendly.
Options for registration:
You can choose to register with any of the following Central Recordkeeping Agencies (CRAs):
- Protean
- KFintech
- Cams NPS
In addition to the online method, the NPS for Minor account can also be opened through registered Points of Presence (POPs) under PFRDA. This can be done either online or in physical mode at major banks, India Post, or pension funds. A comprehensive list of these POPs is available on the PFRDA website (www.pfrda.org.in).
Required documents to open NPS Vatsalya:
To successfully open an NPS Vatsalya account, certain documents must be provided:
Date of Birth Proof: This can include a birth certificate, school leaving certificate, matriculation certificate, PAN card, or passport of the minor.
KYC for Guardian: The guardian must submit proof of identity and address, which can be provided through documents such as Aadhaar, driving license, passport, voter ID card, NREGA job card, or documentation from the National Population Register.
Bank Account: If the guardian is an NRI, a Non-Resident External (NRE) or Non-Resident Ordinary (NRO) bank account (either solo or joint) for the minor is required.
Investment choices:
The NPS Vatsalya account offers several investment choices for the guardian:
Default Choice: The default investment is the Moderate Life Cycle Fund (LC-50), which allocates 50% to equity.
Auto Choice: Guardians can opt for one of three lifecycle funds based on their risk appetite:
Aggressive Life Cycle Fund (LC-75) with 75% equity
Moderate Life Cycle Fund (LC-50) with 50% equity
Conservative Life Cycle Fund (LC-25) with 25% equity
Active Choice: Guardians have the flexibility to actively allocate funds across various asset classes, including up to 75% in equity, up to 100% in corporate debt, up to 100% in government securities, and a maximum of 5% in alternate assets.
By understanding these components, guardians can make informed decisions while opening and managing an NPS Vatsalya account for their minors.
Here are the steps to open a NPS Vatsalya account, including the initial process of registration and guardian details:
Steps to Open a NPS Vatsalya Account
- Go to the official NPS website or the designated platform for NPS Vatsalya.
- Select ‘Register’:
- Look for the option to register for a new NPS account and select it.
- Provide Guardian Details:
Enter the following guardian details:
- Guardian Name: Full name of the guardian.
- Date of Birth: Input in DD/MM/YYYY format.
- Permanent Account Number (PAN): Enter the PAN of the guardian.
- Mobile Number: Provide the guardian’s mobile number.
- Email ID: Enter the guardian’s email address.
Also read: NPS Vatsalya: Eligibility, benefits, withdrawal rules and other details
Enter Minor’s Details.
Fill in the required details for the minor (the child for whom the NPS Vatsalya account is being opened).
Complete KYC Requirements: Provide necessary KYC documents (like proof of identity and address) as per the guidelines.
Choose Investment Options: Select the investment option for the NPS account based on the available choices.
Review and Confirm: Review all entered information for accuracy and completeness.
Submit Application: Submit the application form for processing.
Receive Acknowledgment: Note the acknowledgment number or receipt for future reference.
Follow Further Instructions:
- Follow any additional instructions provided via email or SMS to complete the registration process.
- Once the application is processed, you will receive confirmation of the NPS Vatsalya account opening.
