NPS Vatsalya Scheme: In today’s era, if there is the biggest tension in the heart of any parent, then it is what will be the future of their child? Studies, marriage, career and retirement – it is necessary to have a strong financial backup in every phase. In such a situation, a special scheme has come from the government, which has been specially designed to secure the future of children – NPS Vatsalya Scheme.

Now you must be wondering what is this NPS? So let us tell you that this is not a new thing. NPS i.e. National Pension System is a government scheme which has been running since the year 2004 and whose purpose is to give a fixed income to the people in old age. But now a special scheme has been started for children under this, which is called – Vatsalya Scheme.

What is NPS Vatsalya Scheme and why is it special?

Vatsalya Scheme is a new initiative of NPS which was launched in September 2024. This scheme is opened in the name of children, meaning if there is any child below 18 years of age in your house, then you can start investing in it in his name. And as soon as that child turns 18, this account will automatically turn into a regular NPS account.

The biggest feature of this scheme is that you decide yourself where your deposited amount will be invested – like some part will go to the stock market i.e. equity, some in debt market or government securities. That is, you can decide the direction of the fund according to your planning, which increases the possibility of getting better returns.

₹ 834 every month and a fund of Rs 11 crore 

Now comes the real wonder – if you invest a small amount of just ₹ 834 every month in this scheme, then a tremendous fund can be created in your child’s name by the age of 60. ₹834 per month will be an investment of about ₹10,000 per year.

If you do this continuously and assume an average rate of return of 12.86% (which can be obtained in the stock market in the long run), then by the time the child turns 18, his fund will be worth about ₹7.6 lakh. And when he turns 60 – this amount can increase to ₹11.05 crores!

Now imagine, such a small saving, and such big benefits – no lottery, no risk – just a disciplined investment, which can become a guarantee for your child till old age.

What are the conditions to choose this scheme?

Any Indian citizen can invest in the Vatsalya scheme in the name of his child, the only condition is that the child should be less than 18 years old. Apart from this, it is necessary for the child to have an Aadhaar card and PAN card so that his identification and KYC process can be completed easily.

If later the money deposited in the NPS account is more than ₹ 2.5 lakh, then it will be necessary to take an annuity plan with 80% of the amount, which will provide pension every month. The remaining 20% ​​amount can be withdrawn in lump sum. But if the deposited amount is less than 2.5 lakh, then the entire amount can also be withdrawn at once.

If unfortunately the child dies, then all the money is returned to the child’s guardian i.e. the parents.

when can the money be withdrawn?

It is necessary to invest at least ₹ 1,000 annually in this scheme. But there is no upper limit, that is, you can invest as much as you want.

When the child turns 18, his NPS account will be converted into a Tier-1 account. For this, KYC will have to be done again, but this is an easy process.

If for some reason the money is needed soon, then you can withdraw the money after three years of starting the scheme with some conditions. For example, if there is a situation like child’s education, any serious illness or any disability, then up to 25% of the total deposit, and that too can be withdrawn a maximum of three times.

Plan for the future from today itself 

Look, children’s life does not run only on school or college fees. When they grow up, it is necessary to have a strong financial backup for their career, marriage, home, medical, etc. And if you want that there is never a shortage of money in their life, then take a small step in NPS Vatsalya Scheme from today itself.

If you can make your child a millionaire by saving a few hundred rupees every month, then what can be a better deal than this? That too without any risk, with government guarantee. So what are you waiting for? Think of a name for your child, get your Aadhaar card ready and join this scheme – so that your future is strong and carefree.