The NPS Vatsalya Scheme is a new initiative by the government aimed at securing the financial future of children aged 0 to 18 years. It allows parents or guardians to open a National Pension System (NPS) account for their minor child, providing a long-term investment option that will benefit the child when they grow up. Several banks have made it easy to open an NPS Vatsalya account for your child.
Which Banks Offer NPS Vatsalya Account?
Many leading banks offer the facility to open an NPS Vatsalya account for minors. These banks include:
- ICICI Bank
- State Bank of India (SBI)
- Axis Bank
- Canara Bank
- Central Bank of India
- Indian Overseas Bank
- Bank of Maharashtra
These banks provide a convenient way for parents to invest in their child’s financial future, ensuring long-term savings through the NPS Vatsalya scheme.
Key Features of NPS Vatsalya Scheme
- Eligibility: Parents or guardians can open an NPS Vatsalya account for their minor child, who will be the sole beneficiary.
- Account Management: The account is managed by the guardian until the child turns 18. Once the child reaches adulthood, the account will transition to an NPS-Tier 1 account.
- Pension Retirement Account Number (PRAN): A unique PRAN is issued in the child’s name by the Central Recordkeeping Agency (CRA).
- KYC Requirements: A fresh Know Your Customer (KYC) process will be conducted within three months after the child turns 18.
- Minimum Contribution: Parents can contribute a minimum of Rs. 1,000 annually, and there is no maximum limit on contributions.
- Withdrawal Options: The scheme allows for partial withdrawals for specific needs and provides an exit option at retirement age.
How to Open an NPS Vatsalya Account Online
You can easily open an NPS Vatsalya account for your child online by following these steps:
- Visit the eNPS Website: Go to the official eNPS site.
- Register for NPS Vatsalya: Scroll down and click on ‘Register Now’ under the ‘NPS Vatsalya (Minors)’ section.
- Provide Guardian Details: Enter the guardian’s date of birth, PAN number, mobile number, and email address, then click ‘Begin Registration.’
- Verify OTP: Enter the OTP received on the guardian’s mobile and email.
- Acknowledgment Number: After OTP verification, an acknowledgment number will appear. Click ‘Continue.’
- Enter Details and Upload Documents: Fill in the required information for both the minor and guardian. Upload the necessary documents and click ‘Confirm.’
- Initial Contribution: Make the initial deposit of Rs. 1,000.
- Account Creation: Once the deposit is made, the PRAN will be generated, and the NPS Vatsalya account will be opened in the child’s name.
Conclusion
The NPS Vatsalya Scheme offers a simple and secure way to invest in your child’s financial future. With the help of various banks and online registration options, opening an NPS Vatsalya account is easy and accessible. By making regular contributions, parents can ensure that their child has a stable financial foundation when they grow up.
For more details, visit the official eNPS website or contact your bank to get started.