NPS Vatsalya Scheme: The NPS Vatsalya Yojana, launched by the government on September 18, 2024, has been well received by the public. Within three months of its launch, 75,000 people have invested in this scheme. The minimum annual investment in this scheme, which aims to secure the future of minors, is Rs 1,000. Pension Fund Regulatory and Development Authority (PFRDA) Chairman Deepak Mohanty shared this information on Saturday. If Rs 10,000 is invested every year in the NPS Vatsalya Yojana, by the time the account holder turns 60, they will have a fund of Rs 2.75 crore.
Finance Minister Nirmala Sitharaman launched the NPS Vatsalya scheme in September. The scheme is based on the principle of intergenerational equity, providing cover for both elder and younger family members. Currently, there are over 8 crore subscribers under NPS and the Atal Pension Yojana (APY). Assets under management (AUM) in NPS stand at around Rs 14 lakh crore and are expected to reach Rs 15 lakh crore by the end of the financial year 2024-25.
Eligibility for NPS Vatsalya
All minors (persons up to 18 years old) can participate in the NPS Vatsalya scheme. To open an account, a minimum of ₹1,000 must be deposited initially, followed by ₹1,000 annually. Parents can open the NPS Vatsalya account at registered banks, post offices, or pension funds, either in person or online through the NPS Trust’s eNPS platform. Once the child turns 18, the account will automatically convert into a regular NPS Tier I account.
Expected Returns and Corpus Amount
When launching the scheme on September 18, Finance Minister Nirmala Sitharaman mentioned that NPS has provided returns of 14% in equity, 9.1% in corporate bonds, and 8.8% in government securities.
- If parents contribute ₹10,000 every year for 18 years, the investment will grow to about ₹5 lakh at an estimated return of 10%.
- If the investment continues until the investor turns 60, the corpus will increase based on different rates of return:
- At 10% return: ₹2.75 crore
- At 11.59% return (50% equity, 30% corporate loans, 20% government securities): ₹5.97 crore
- At 12.86% return (75% equity, 25% government securities): ₹11.05 crore
How To apply online for NPS Vatsalya:
- Visit eNPS Portal: Go to eNPS website.
- Register: Select ‘NPS Vatsalya’ and create an account.
- Fill Details: Enter the minor’s and guardian’s details.
- Submit Documents: Provide age proof for the minor and KYC documents for the guardian.
- Initial Payment: Pay the minimum ₹1,000 online.
- Get PRAN: After processing, receive the Permanent Retirement Account Number (PRAN) for the minor.
- Annual Contribution: Contribute a minimum ₹1,000 annually.
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