NPS Account for Minors: Features, Eligibility, and How to Open an NPS Vatsalya Account

NPS Account for Minors

NPS Account for Minors: NPS Vatsalya which is a special alternative to the National Pension System (NPS). This is specially designed for children under the age of 18.

Parents of these children under the age of 18 can open an NPS Vatsalya account for their child and some amount every month or annually until their child turns 18.

However, when the child turns 18, the NPS Vatsalya account can easily be changed to a regular National Pension System (NPS) account and then can be managed by the child.

The NPS Vatsalya scheme which was introduced by Finance Minister Nirmala Sitharaman during her Union Budget announcement speech guarantees the financial security of the child the turns 18.

NPS Vatsalya Scheme Features

Parents can save money for their child's retirement.

It is a long-term investment and can take the advantage of compounding.

Under Section 80C of the Income Tax Act, you don’t have to pay any tax.

You get the option to choose your investment depending on how much risk the parents want to take.

This scheme is managed by the Indian government so it is safe and trustworthy.

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NPS Vatsalya Eligibility Criteria

• You should be the legal parents or guardian of the child.
• The child must not be more than 18 years old.
• All Indian citizens, Non-Resident Indian (NRI), or Overseas Citizen of India (OCI) are eligible to apply for this scheme.

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How to Open an NPS Vatsalya Account?

To open an NPS Vatsalya account follow the below-mentioned steps:

• Parents first have to choose a Pension Fund Manager (PFM) from the list.
• Parents have to submit child’s birth certificate, their identity, and address proof.
• Fill in all the required details in the application form.
• Pay the minimum amount needed to open an NPS Vatsalya account.
• After you complete all the processes, your child's NPS Vatsalya account will be activated.

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