**Summary:**
The NPS Vatsalya Scheme, a contributory pension scheme for minors, was launched on September 18, 2024, with the goal of creating a fully pensioned society. Parents or guardians can contribute a minimum of Rs. 1000 per annum with no ceiling on maximum contribution. Upon reaching the age of majority, the account can be seamlessly converted into a standard NPS account.
The scheme promotes intergenerational equity and financial security by encouraging early savings and fostering a culture of retirement planning. Effective April 1, 2025, income tax deductions under Section 80CCD 1B, up to Rs. 50,000, have been extended towards NPS Vatsalya contributions made by parents or guardians (under the old tax regime).
NPS Vatsalya is a pan-India scheme accessible to all Indian citizens, including government employees. As of August 3, 2025, 1.30 lakh minor subscribers are registered under the scheme, with 29 subscribers from the Dahod district.
The scheme is implemented through Points of Presence (PoPs), including bank branches and Non-Bank entities, regulated by the Pension Fund Regulatory and Development Authority (PFRDA). NPSVatsalya accounts can also be opened online via the NPS Trust platform. PFRDA conducts media campaigns across TV, radio, social media, print, and outdoor channels to promote the scheme nationwide.
Key Entities Referenced
NPS Vatsalya Scheme: A contributory pension scheme for minors launched on 18.09.2024 with the objective of creating a fully pensioned society.
SHRI CHINTAMANI MAHARAJ: Member of Parliament who raised a question in Lok Sabha regarding the NPS Vatsalya Scheme.
SHRI JASWANTSINH SUMANBHAI BHABHOR: Another Member of Parliament who raised a question in Lok Sabha regarding the NPS Vatsalya Scheme.
SHRI PANKAJ CHAUDHARY: Minister of State for Finance who answered the questions related to the NPS Vatsalya Scheme in Lok Sabha.
Dahod district: A district in India where the impact and awareness of the NPS Vatsalya Yojana were questioned.
Pension Fund Regulatory and Development Authority (PFRDA): The regulatory authority overseeing the implementation of the NPS Vatsalya Scheme through Points of Presence (PoPs).
Section 80CCD 1B: Section under the old tax regime, income tax deduction up to Rs. 50,000 has been extended towards NPSVatsalya contribution made by the parent or guardian w.e.f. 01.04.2025.
Lok Sabha: The lower house of the Parliament of India, where questions regarding the NPS Vatsalya Scheme were raised and answered.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
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LOK SABHA
UNSTARRED QUESTION NO. †3511
ANSWERED ON MONDAY, 11 AUGUST, 2025/ SRAVANA 20, 1947 (SAKA)
NPS VATSALYA SCHEME
†3511. SHRI CHINTAMANI MAHARAJ
SHRI JASWANTSINH SUMANBHAI BHABHOR
Will the Minister of FINANCE be pleased to state:
(a) the main aims and objectives of NPS Vatsalya scheme;
(b) the extent to which this scheme is helpful especially for salaried employees in terms of
savings;
(c) whether the Government employees in Dahod have been benefited under the NPS Vatsalya
Yojana; and
(d) whether the Government has launched any campaigns in tribal areas to create awareness and
encourage acceptance of the scheme and if so, the details thereof?
ANSWER
MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (d): NPS-Vatsalya Scheme, a contributory pension scheme for minors, was launched on
18.09.2024 with the objective of creating fully pensioned society. The scheme is designed for
parents/guardians to contribute, a minimum of Rs. 1000 per annum with no ceiling on maximum
contribution, for their minor subscriber. On attaining the age of majority, the account of the subscriber
can be seamlessly converted into NPS account. NPS-Vatsalya promotes inter-generational equity and
financial security by encouraging early savings for children as well as promoting a culture and habit
of retirement planning across generations. Under the old tax regime, income tax deduction u/s 80CCD
(1B) up to Rs. 50,000 /- has been extended towards NPS-Vatsalya contribution made by the parent or
guardian w.e.f. 01.04.2025. NPS Vatsalya is a pan India scheme, open to all citizens of India,
including Government employees.
As on 03.08.2025, a total of 1.30 lakh minor subscribers are registered under NPS Vatsalya Scheme
out of which 29 minor subscribers are from the Dahod district.
The scheme is implemented through Points of Presence (PoPs), which include the Bank branches and
Non-Bank entities, under the regulation of the Pension Fund Regulatory and Development Authority
(PFRDA). These PoPs operate across India, in all geographies, thereby ensuring extensive coverage
and accessibility. Additionally, the NPS-Vatsalya account can also be opened through online platform
extended by the NPS Trust, further enhancing reach and convenience.
PFRDA also runs the media campaigns to popularise the scheme through TV, radio, theatres, social
media, print and outdoor campaigns to ensure maximum coverage across the country.
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