New Delhi: The government recently launched the NPS Vatsalya scheme recently. This is a unique investment-cum-retirement plan designed for children aged 0 to 18. This scheme gives parents an opportunity to secure their child’s financial future by saving for their retirement.
Are you one of them wondering to know which financial institutions are offering NPS Vatsalya? Where can you open it? These questions are making rounds as several banks have been brought on board to help parents open accounts under this scheme.
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Which Banks Offer NPS Vatsalya Accounts?
Parents can open an NPS Vatsalya account for their children at several major banks. These include ICICI Bank, State Bank of India, Axis Bank, Canara Bank, Central Bank of India, Indian Overseas Bank, and Bank of Maharashtra. These banks provide a simple way for parents to invest in their children’s retirement savings through the National Pension System (NPS).
NPS Vatsalya Scheme: Key Features
Eligibility
Parents or guardians can open the account for their minor children, who will be the sole beneficiaries.
Account Management
The account is operated by the guardian until the child turns 18.
Unique Pension Retirement Account Number (PRAN)
The Central Recordkeeping Agency (CRA) will issue a PRAN for the child.
Transition to NPS-Tier 1
Once the child turns 18, the account automatically transitions to the NPS-Tier 1 under the All Citizen Model.
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KYC Requirements
A new KYC process must be completed within three months of the child reaching adulthood.
Minimum Contribution
A minimum annual contribution of Rs. 1,000 is required, with no upper limit on contributions.
Withdrawal Options
The scheme allows for partial withdrawals and exit options.
How to Open NPS Vatsalya Account Online?
Parents can easily open an NPS Vatsalya account online by following these steps:
1. Visit the official eNPS website.
2. Under the “NPS Vatsalya (Minors)” section, click on the ‘Register Now’ option.
3. Enter the guardian’s details, including date of birth, PAN number, mobile number, and email address, then click ‘Begin Registration.’
4. Verify the OTP sent to the guardian’s mobile and email.
5. Fill in the required information for both the child and the guardian, and upload the necessary documents.
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6. Make the initial deposit of Rs. 1,000.
7. Once done, the PRAN will be generated, and the NPS Vatsalya account will be opened in the child’s name.
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