PFRDA issues NPS Vatsalya Scheme Guidelines 2025

The Pension Fund Regulatory and Development Authority (PFRDA) has issued the NPS Vatsalya Scheme Guidelines, 2025, providing a comprehensive framework for the implementation of the National Pension System Vatsalya (NPS Vatsalya).

The scheme is aimed at inculcating a culture of savings, promoting financial literacy from an early age, and strengthening long-term financial planning among citizens.

About NPS Vatsalya

NPS Vatsalya is a contributory savings and long-term financial security scheme designed exclusively for minors.
It was announced in the Union Budget 2024–25 and was subsequently launched on 18 September 2024 by the Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman.

Objectives of the Scheme

• Encourage early-age financial discipline
• Promote retirement planning mindset from childhood
• Provide a structured pension savings avenue for minors
• Strengthen financial inclusion across generations

Eligibility and Coverage

• Open to all Indian citizens below 18 years of age
• Includes Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs)
• The minor is the sole beneficiary of the account
• Account is opened in the name of the minor and operated by a guardian

Contribution Requirements

• Minimum initial contribution: ₹250
• Minimum annual contribution: ₹250
• No maximum limit on contributions, allowing flexibility for long-term wealth creation

Withdrawal Provisions

• Partial withdrawals permitted after completion of three years from the date of account opening
• Withdrawal limits:
  • Up to two partial withdrawals before attaining 18 years
  • Up to two partial withdrawals between 18 and 21 years
• Withdrawals are subject to specified conditions under the guidelines