NPS Vatsalya Scheme
The "NPS Vatsalya" scheme is a contributory pension scheme for Indian minors. It is regulated by PFRDA and aims to create a pensioned society. All Indian minors can voluntarily participate in the scheme.
Contribution:
- Minimum Rs. 1,000 and no upper limit.
- Subsequent contribution: Minimum Rs. 1,000 per annum and no upper limit.
Withdrawal, Exit and Death
- Withdrawal up to 25% of contribution after a lock-in period of 3 years allowed for education, specified illness, and disability. Maximum three times.
- Upon attainment of age of 18 years, seamless shift to NPS Tier – I (All Citizen).
- Exit allowed on attainment of 18 years of age:
- Corpus more than Rs. 2.5 lakh:80% of the corpus is utilized for the purchase of annuity and 20% can be withdrawn as a lump sum.
- Corpus less than or equal to Rs. 2.5 lakh:Entire corpus can be withdrawn as a lump sum.
- On death, the entire corpus would be returned to the guardian.
Channel of Subscription/Opening of Accounts: Through all branches.
Salient Features
- Scheme:A saving-cum-pension scheme regulated and administered by the PFRDA.
- Eligibility:All minor citizens (age till 18 years).
- Operations:
- Account opened in the name of minor and operated by Guardian.
- Minor to be the sole beneficiary.
Documents Required:
- KYC of Guardian by submitting Proof of Identity and Address (Aadhaar, Driving License, Passport, Voter ID card, NREGA Job Card, National Population Register).
- Date of Birth proof of the Minor (Birth certificate, School leaving certificate, Matriculation Certificate, PAN, Passport).
- NRE/NRO Bank Account (solo or joint) of the minor if the guardian is NRI.
- Pension Fund Selection:Guardian can choose any one of the Pension Funds registered with PFRDA.
- Investment Choices:
- Default Choice:Moderate Life Cycle Fund - LC-50 (50% equity).
- Auto Choice:Guardian can choose Lifecycle Fund - Aggressive - LC-75 (75% equity), Moderate LC-50 (50% equity), or Conservative LC-25 (25% equity).
- Active Choice:Guardian actively decides allocation of funds across Equity (up to 75%), Corporate Debt (up to 100%), Government Securities (up to 100%), and Alternate Asset (up to 5%).
- Grievance Redressal
- Officer- SK Rasool Saheb, Contact No.: 9490158800