**Executive Summary**
The Pension Fund Regulatory and Development Authority (PFRDA) issued the NPS Vatsalya Scheme Guidelines 2025 on January 9th, 2026. NPS Vatsalya, launched on September 18, 2024, is a contributory savings and long-term financial security scheme designed exclusively for minors. The scheme allows parents and legal guardians to build long-term savings and shift to the National Pension System upon the minor attaining majority. Further details are available in the NPS Vatsalya Scheme Guidelines 2025.
**Key Points / Main Content**
* **Eligibility**
* Open to all Indian citizens (including NRI/OCI) below 18 years.
* The minor is the sole beneficiary.
* Account is opened in the name of the minor and operated by the guardian.
* **Contribution**
* Minimum initial and annual contribution: ₹250.
* No maximum limit on contribution.
* Contributions can be gifted by relatives and friends.
* **Pension Fund Selection**
* The guardian can choose any Pension Fund registered with PFRDA.
* **Partial Withdrawal Provisions**
* Allowed after three years from account opening.
* Up to 25% of own contributions (excluding returns).
* Permitted for education, medical treatment, and specified disabilities.
* Allowed twice before 18 years and twice between 18-21 years, subject to conditions.
* **Upon Attaining Majority**
* Fresh KYC is mandatory.
* Options available till 21 years:
* Continue under NPS Vatsalya.
* Shift to NPS Tier I (All Citizen Model or any other applicable model).
* Exit with up to 80% as lump sum and a minimum of 20% to be annuitised, or full withdrawal permitted if corpus is ₹8 lakh or less.
* The Guidelines introduce a targeted incentivization framework for community-level workers, such as Anganwadi workers, ASHAs and Bank Sakhis, recognizing their role in creating awareness and facilitating onboarding, especially in rural and semi-urban areas.
**Impact Analysis**
**Parents and Legal Guardians**
* **Impact:** Enabled to systematically build long-term savings for their children from an early age.
* **Action Required:** Open and manage NPS Vatsalya accounts for eligible minors, choosing a suitable Pension Fund and complying with KYC requirements upon the minor attaining majority.
**Minors**
* **Impact:** Benefit from long-term financial security and savings.
* **Action Required:** No immediate action required until attaining majority, at which point fresh KYC is needed, and options for continuing, shifting, or exiting the scheme must be considered.
**Community-Level Workers (Anganwadi workers, ASHAs, Bank Sakhis)**
* **Impact:** Recognized for their role in creating awareness and facilitating onboarding to the scheme, especially in rural and semi-urban areas.
* **Action Required:** Leverage the incentivization framework to promote and facilitate enrollment in the NPS Vatsalya scheme.
**PFRDA Registered Pension Funds**
* **Impact:** May see an increase in AUM due to the inflows of NPS Vatsalya accounts.
* **Action Required:** Ensure compliance with the NPS Vatsalya Scheme Guidelines 2025.
Key Entities Referenced
NPS Vatsalya Scheme Guidelines 2025: Guidelines providing information on the National Pension System Vatsalya, a savings scheme designed for minors.
PFRDA (Exits and Withdrawals under NPS) Regulations, 2015: Regulations amended to include provisions for the NPS Vatsalya Scheme.
PFRDA: Pension Fund Regulatory and Development Authority; regulator for pension funds that issued the guidelines
National Pension System Vatsalya (NPS Vatsalya): A contributory savings scheme designed exclusively for minors.
Viksit Bharat@2047: National vision that NPS Vatsalya aligns with.
Press Release
PFRDA issues NPS Vatsalya Scheme Guidelines 2025 to strengthen long-term financial
security for Minors
New Delhi, 09th January, 2026: The Pension Fund Regulatory and Development Authority
has issued the NPS Vatsalya Scheme Guidelines 2025, providing comprehensive information
on the National Pension System Vatsalya (NPS Vatsalya), a contributory savings and long-
term financial security scheme designed exclusively for minors.
NPS Vatsalya was announced in the Union Budget for FY 2024-25 and subsequently launched
on 18 September, 2024 by the Hon’ble Union Minister for Finance and Corporate Affairs, Smt.
Nirmala Sitharaman. The scheme enables parents and legal guardians to systematically build
long-term savings for their children from an early age, with a provision to shift to the National
Pension System upon attaining majority.
In line with the amendments notified to the PFRDA (Exits and Withdrawals under NPS)
Regulations, 2015, the NPS Vatsalya Guidelines lay down flexible provisions for long-term
financial security of minors, while ensuring continuity of savings on attaining majority.
Key features of NPS Vatsalya are as under:
Eligibility
o Open to all Indian citizens, including NRI/OCI, below 18 years of age
o Minor is the sole beneficiary
o Account opened in the name of the minor and operated by the guardian
Contribution
o Minimum initial and annual contribution: ₹250
o No maximum limit on contribution
o Contributions can also be gifted by relatives and friends.
Pension Fund Selection
o Guardian can choose any one Pension Fund registered with PFRDA
Partial Withdrawal Provisions
o Allowed after completion of three years from account opening
o Up to 25% of own contributions (excluding returns)
o Permitted for education, medical treatment and specified disabilities
o Allowed twice before 18 years and twice between 18-21 years, subject to
conditions
Upon on Attaining Majority
o Fresh KYC mandatory on attaining 18 yearso Options available till 21 years:
Continue under NPS Vatsalya, or
Shift to NPS Tier I (All Citizen Model or any other applicable model), or
Exit with:
Up to 80% as lump sum
Minimum 20% to be annuitised
Full withdrawal permitted if corpus is ₹8 lakh or less
The Guidelines introduce a targeted incentivisation framework for community-level workers
such as Anganwadi workers, ASHAs and Bank Sakhis, recognising their role in creating
awareness and facilitating onboarding, especially in rural and semi-urban areas.
NPS Vatsalya aims to nurture a culture of savings, promote financial literacy from an early age
and strengthen long-term financial planning, aligned with the national vision of Viksit
Bharat@2047. The Guidelines seek to bring clarity, transparency, and uniformity for all
stakeholders, while supporting the broader objective of creating a pensioned and financially
secure society.
For further details, stakeholders may refer to the NPS Vatsalya Scheme Guidelines 2025.
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