NPS Vatsalya Scheme Guidelines 2025: Key rules on investment, exit and withdrawals for minors explained

What is NPS Vatsalya?

Why were new guidelines issued

PFRDA had earlier issued NPS Vatsalya scheme details on 18th September, 2024. The January 7 circular supersedes the earlier guidelines and formally issues the NPS Vatsalya Scheme Guidelines 2025, which will come into effect from a date to be notified after necessary system capabilities are built.

NPS Vatsalya is defined as a Specific Purpose Scheme under Regulation 4A of the PFRDA (Exit and Withdrawals under NPS) Regulations, 2015. Amendments to these regulations were notified on 12th December, 2025 to provide modalities for exit and withdrawals under the scheme.

Who can open an NPS Vatsalya account?

The account is opened for a minor below 18 years of age by a parent or legal guardian. The minor is the subscriber under the scheme, while the guardian operates the account.

Contribution rules under NPS Vatsalya

The minimum contribution for account opening and annual contribution is ₹250. Contributions can be made by parents, guardians, relatives, and friends, including gifted contributions, through physical and online modes, PoPs, or the eNPS platform.

How the money is invested

Guardians can choose pension funds registered with PFRDA. Contributions are invested across government securities, debt instruments, money market instruments, and equity, with equity exposure ranging between 50% and 75%.

Partial withdrawal rules

Partial withdrawal is permitted after three years from account opening to meet contingency requirements such as education, treatment of specified illnesses, or disability of more than 75% of the minor subscriber.

• The subscriber or guardian, as the case may be, shall be eligible to make a partial withdrawal only after being in the scheme for at least three years from the date of account opening.

• A maximum amount of up to 25% of contributions (excluding returns generated thereupon) shall be allowed to be withdrawn partially. This facility is available on a declaration basis.

• The subscriber/guardian shall be eligible to take not more than two partial withdrawals from the account during the period till the subscriber attains the age of eighteen years.

• Further, upon attainment of eighteen years of age and subject to completion of the prescribed KYC requirements, the subscriber shall also be eligible to make a maximum of two additional partial withdrawals during the period between eighteen and twentyone years of age.

What happens when the child turns 18?

Upon attaining the age of eighteen years, the subscriber may continue under the scheme for up to three years, shift to the All Citizen Model of NPS, or exit the scheme, subject to completion of KYC requirements.

Provisions in case of death

In the event of the death of the subscriber, the entire accumulated pension wealth shall be payable to the guardian, nominee(s), or legal heir(s). Provisions are also specified for the change of guardian in case of death.

How to open and track the account

NPS Vatsalya accounts can be opened through registered Points of Presence, online facilities, or the eNPS platform. Account performance can be tracked through Statements of Transactions, online login, or mobile applications.