PFRDA revamps NPS Vatsalya scheme for minors
PFRDA has rolled out fresh guidelines for the NPS Vatsalya Scheme, a pension plan designed just for minors.
Parents or guardians need to make a minimum initial and annual contribution of ₹250.
The new rules kick in once system upgrades are done.
What's new and why it matters
Kids can now withdraw up to 25% of their savings after three years, mainly for education or health needs.
Before turning 18, two withdrawals are allowed; after that, two more between ages 18 and 21 (with KYC).
At 18, you can keep going with the scheme, switch to a regular NPS account, or cash out up to 80%.
Perks and incentives
Investments are balanced—think: most in equity (50-75%), some in government securities (15-20%), and the rest in debt.
Charges match those of regular NPS accounts.
To boost rural sign-ups, Anganwadi workers, ASHA workers, and Bank Sakhis get a ₹100 incentive per account—a small nudge that'll be reviewed next year.
Why this is worth knowing
This update aims to make saving for your future—or your younger sibling's—a bit more flexible and rewarding.
It's all about building good money habits early on while keeping options open as you grow up.