How to invest in NPS Vatsalya:The NPS Vatsalya program allows parents to make monthly investments starting from as low as Rs1,000, with no upper limit

How to invest in NPS Vatsalya: 5 banks that have launched NPS Vatsalya, a pension scheme for minors It is designed to support the government's pledge to ensure overall financial security by providing its members with a secure and dignified financial future

The government has introduced the National Pension System Vatsalya (NPS Vatsalya) plan designed for kids that would boost long-term financial security and encourage early savings habits. On July 23, 2024, the Union Budget 2024–25 revealed this novel pension plan for minors.

NPS Vatsalya: Your child can get more than Rs 10 crore on retirement if you put Rs 10,000 a year till he is 18

NPS Vatsalya scheme details

According to a Press Information Bureau (PIB) release issued on September 20, parents can invest as little as Rs1,000 per month under the NPS Vatsalya program, with no maximum. This allows parents to instill in their children the value of disciplined savings. In order for the account to change into the child's name when the youngster turns 18, it is intended that parents manage the program until then. When the account matures, it can easily be transferred to a standard NPS account or into another non-NPS plan. NPS Vatsalya aims to fulfill the government's commitment to total financial well-being by offering its subscribers a safe and respectable financial future, all while offering the possibility of significant wealth building through the power of compounding.

NPS Vatsalya launched: Rules regarding eligibility, investment amount, withdrawals, how to buy online

Who can open NPS Vatsalya

All minor citizens up to the age of eighteen are eligible to register an account under the NPS Vatsalya plan. Throughout the procedure, a minor is the only beneficiary since the account is formed in their name and is overseen by their guardian until they become an adult.
Growfast
  • Java Programming with ChatGPT: Learn using Generative AI

    Artificial Intelligence(AI)

    Java Programming with ChatGPT: Learn using Generative AI

    By - Metla Sudha Sekhar, Developer and Lead Instructor

  • Basics of Generative AI : Unveiling Tomorrow's Innovations

    Artificial Intelligence(AI)

    Basics of Generative AI : Unveiling Tomorrow's Innovations

    By - Metla Sudha Sekhar, Developer and Lead Instructor

  • Generative AI for Dynamic Java Web Applications with ChatGPT

    Artificial Intelligence(AI)

    Generative AI for Dynamic Java Web Applications with ChatGPT

    By - Metla Sudha Sekhar, Developer and Lead Instructor

  • Mastering C++ Fundamentals with Generative AI: A Hands-On

    Artificial Intelligence(AI)

    Mastering C++ Fundamentals with Generative AI: A Hands-On

    By - Metla Sudha Sekhar, Developer and Lead Instructor

  • Master in Python Language Quickly Using the ChatGPT Open AI

    Artificial Intelligence(AI)

    Master in Python Language Quickly Using the ChatGPT Open AI

    By - Metla Sudha Sekhar, Developer and Lead Instructor

  • Zero to Hero in Microsoft Excel: Complete Excel guide 2024

    Office Productivity

    Zero to Hero in Microsoft Excel: Complete Excel guide 2024

    By - Metla Sudha Sekhar, Developer and Lead Instructor

  • Vastu Shastra Course

    Astrology

    Vastu Shastra Course

    By - Sachenkumar Rai, Vastu Shashtri

  • SQL for Data Science along with Data Analytics and Data Visualization

    Data Science

    SQL for Data Science along with Data Analytics and Data Visualization

    By - Metla Sudha Sekhar, Developer and Lead Instructor

  • A Comprehensive ASP.NET Core MVC 6 Project Guide for 2024

    Web Development

    A Comprehensive ASP.NET Core MVC 6 Project Guide for 2024

    By - Metla Sudha Sekhar, Developer and Lead Instructor

  • Mastering Microsoft Office: Word, Excel, PowerPoint, and 365

    Office Productivity

    Mastering Microsoft Office: Word, Excel, PowerPoint, and 365

    By - Metla Sudha Sekhar, Developer and Lead Instructor

  • Digital marketing - Wordpress Website Development

    Marketing

    Digital marketing - Wordpress Website Development

    By - Shraddha Somani, Digital Marketing Trainer, Consultant, Strategiest and Subject Matter expert

  • Mastering Full Stack Development: From Frontend to Backend Excellence

    Web Development

    Mastering Full Stack Development: From Frontend to Backend Excellence

    By - Metla Sudha Sekhar, Developer and Lead Instructor

  • Financial Literacy i.e Lets Crack the Billionaire Code

    Finance

    Financial Literacy i.e Lets Crack the Billionaire Code

    By - CA Rahul Gupta, CA with 10+ years of domain experience, trainer

  • Business Storytelling Masterclass

    Leadership

    Business Storytelling Masterclass

    By - Ameen Haque, Founder of Storywallahs

  • Future of Marketing & Branding Masterclass

    Marketing

    Future of Marketing & Branding Masterclass

    By - Dr. David Aaker, Professor at Haas School of Business

  • Human Potential and the Future of Employment

    HR

    Human Potential and the Future of Employment

    By - Lynda Gratton, Co-chair of the World Economic Forum Council on Work, Wages and Job Creation, Professor of Management Practice

  • ESG and Business Sustainability Strategy

    Strategy

    ESG and Business Sustainability Strategy

    By - Vipul Arora, Partner, ESG & Climate Solutions at Sattva Consulting Author I Speaker I Thought Leader

  • Financial Reporting and Analytics

    Finance

    Financial Reporting and Analytics

    By - Dr. C.P. Gupta, Professor: Department of Finance and Business Economics, University of Delhi


    Where to open account NPS Vatsalya

    The account can be opened through registered points of presence (PoPs) with the Pension Fund Regulatory and Development Authority (PFRDA). These points of presence include major banks, India Post, and pension funds, with account setup available both online and in person. For individuals looking for an online option, the NPS Trust's eNPS platform offers a convenient and safe way to create and manage accounts. The PFRDA website contains a complete list of registered PoPs.

    Documents required
    • Proof of Date of Birth for the Minor: This can be provided through a Birth Certificate, School Leaving Certificate, Matriculation Certificate, PAN, or Passport.
    • KYC of the Guardian: The guardian must submit proof of identity and address, which can include Aadhaar, Driving License, Passport, Voter ID card, NREGA Job Card, or National Population Register documents.
    • Permanent Account Number (PAN) of the Guardian or Form 60 declaration, as per Rule 114B.
    • NRE/NRO Bank Account (solo or joint) of the minor, in case the guardian is an NRI (Non-Resident Indian) or OCI (Overseas Citizen of India).

    How to open NPs Vatsalya

    Click on ‘Apply Online’ > select your preferred CRA > Proceed to fill details.
    (CAMS and K-fin Technology will share separate pop up basis applicant Date of Birth to fill Minor’s details. For Protean, please select ‘Applicant type – NPS Vatsalya’)

    Banks where you can open NPS Vatsalya

    These banks that have launched NPS Vatsalaya: ICICI Bank, State Bank of India, Axis Bank, Canara Bank, Central Bank of India, and Bank of Maharashtra.

    • State Bank of India

    • ICICI Bank
    As per an ICICI Bank press release, "To register for NPS Vatsalya, customers can visit their nearest ICICI Bank business centre."

    "We have equipped all ICICI Bank business centres across the country to open the NPS Vatsalya account for customers. This account helps in long-term wealth creation, ensuring that by the time the minor becomes an adult, there is a financial corpus in place for them," said Sriram H., Head - Deposit Products, ICICI Bank.

    • Axis Bank
    "At the launch event held in Delhi, Finance Minister Nirmala Sitharaman, presented a symbolic Permanent Retirement Account Number (PRAN) to Ms. Lamba Karnam Aaditri from Hyderabad, who was selected by Axis Bank. As a part of the initiative, Axis Bank opened total 17 NPS Vatsalya accounts and handed over symbolic PRANs to the children. The senior Bank officials Ms. Baishakhi Banerjee - Regional Branch Banking Head, South 1 and Rakesh Bhojnagarwala - Regional Branch Banking Head, West 2 handed over symbolic PRANs and opened NPS Vatslaya accounts for around 16 children in Bangalore and Ahmedabad," according to an Axis Bank press release.

    • Canara Bank


    • Punjab National Bank (PNB)


    • Central Bank of India
    According to the Central Bank of India website here is how you can invest in NPS Vatsalya, "Channel of Subscription/Opening of Accounts: Through all branches; Or Link: https://www.centralbank.net.in/jsp/NPS.html ."

    • Bank of Maharastra
    Click here to invest in NPS Vatsalya: https://bankofmaharashtra.in/nps-vatsalya#:~:

    eNPS online platform


    The NPS Trust website states, "The online platform (eNPS) is the quickest way to open an NPS Vatsalya account. This system allows you to open an NPS Vatsalya account and make subsequent contributions. You can choose any of the following CRAs:

    • Protean
    • KFintech
    • CAMS NPS"

    This story originally appeared on: India Times - Author:Faqs of Insurances