NPS Vatsalya got 9,705 minor subscribers on Day 1. Check how you can start investing for your child

NPS Vatsalya, which was launched on September 18, 2024 by the Union Finance Minister Nirmala Sitharaman, registered 9,705 minor subscribers on Day 1. The scheme referred to as the National Pension System for kids is overseen by the Pension Fund Regulatory and Development Authority (PFRDA). This initiative offers parents and guardians a chance to initiate retirement savings for their children at an early stage, leveraging the benefits of compounding. This initiative marks a noteworthy advancement in India's progressing pension sector.

As per PFRDA, NPS Vatsalya received an overwhelming response, with 9,705 minor subscribers enrolled under the scheme through various Points of Presence (PoPs) and the e-NPS portal. Of this, 2,197 accounts were opened through e-NPS portal alone. The launch of NPS Vatsalya was streamed live on the Ministry of Finance and PFRDA's YouTube channels, attracting over 15,723 views.

Children who are registered will be provided with PRAN cards (Permanent Retirement Account Number) upon joining the NPS (National Pension System) as part of the enrollment process.

The NPS Vatsalya scheme is a government initiative, just like the National Pension Scheme, designed to encourage long-term savings for minors in India. This scheme is accessible to all Indian citizens, including Non-Resident Indians (NRIs), who wish to establish savings accounts for their minor children. Additionally, legal guardians of minors are also permitted to open the NPS Vatsalya account, providing a valuable opportunity for financial planning and securing the future of young beneficiaries.

How you can start investing for your child

To swiftly open an NPS Vatsalya account, utilize the online platform (eNPS) which streamlines the process and enables you to make contributions. Select your preferred CRA from the options provided below by clicking on the corresponding link.

To open NPS accounts for minors, individuals can choose to go through registered Point of Presence (POPs) with PFRDA. This can be done online or through physical mode, with major banks, India Post, Pension Fund, and more serving as POPs. A comprehensive list of PoPs is accessible on the PFRDA website at www.pfrda.org.in.

Online process

One can visit the official National Pension System (NPS) website or access the dedicated platform for NPS Vatsalya. Locate the 'Register' button or link on the homepage or designated section. Click on the option to register for a new NPS account. Fill in the required information and provide details of the guardian if applicable.

Upon account activation, please proceed to make an initial contribution of Rs.1,000. Following this, the PRAN will be generated and the NPS Vatsalya account will be opened under the minor's name.

Documents needed (online and offline both)

In order to open an NPS Vatsalya account, applicants must provide the following essential documents:

> Date of Birth Proof: Valid documents include a birth certificate, school leaving certificate, matriculation certificate, PAN card, or passport of the minor.

> KYC for Guardian: The guardian must submit proof of identity and address, such as Aadhaar Card, driving license, passport, voter ID card, NREGA job card, or documentation from the National Population Register.

> Bank Account: If the guardian is an NRI, a Non-Resident External (NRE) or Non-Resident Ordinary (NRO) bank account (solo or joint) specifically for the minor is required.

> Scanned copies of passport, in case of NRI subscribers.

> Scanned copy of foreign address proof, in case of OCI subscribers

> Scanned copy of bank proof, in case of NRI or OCI subscribers