PFRDA issues NPS Vatsalya Scheme Guidelines 2025 for minors' pension savings
The Pension Fund Regulatory and Development Authority issued the NPS Vatsalya Scheme Guidelines 2025 on 13 January 2026, setting out eligibility, contribution, withdrawal and transition rules for the pension savings scheme for minors.
Summary
NPS Vatsalya, the contributory pension savings scheme designed exclusively for minors, now has detailed guidelines after the Pension Fund Regulatory and Development Authority (PFRDA) issued the NPS Vatsalya Scheme Guidelines 2025 on 13 January 2026. The scheme is open to all Indian citizens below 18, including NRIs and OCIs, with the minor as sole beneficiary and the account run by a guardian. The minimum initial and annual contribution is ₹250 with no upper limit, and partial withdrawal of up to 25% of own contributions is allowed after three years for education, medical treatment or specified disabilities. Announced in the Union Budget 2024-25, the scheme was launched on 18 September 2024 and allows a shift to the regular NPS on attaining majority.
Key facts
- Scheme
- NPS Vatsalya — pension savings for minors
- Guidelines
- NPS Vatsalya Scheme Guidelines 2025, issued 13 January 2026
- Eligibility
- Indian citizens incl. NRI/OCI below 18; minor is sole beneficiary
- Contribution
- Minimum ₹250 initial and annual; no maximum
- Partial withdrawal
- After 3 years; up to 25% of own contributions
- Launch
- 18 September 2024 (announced in Budget 2024-25)
Practice MCQs 3 questions
What is the minimum initial and annual contribution under NPS Vatsalya, as per the guidelines issued in January 2026?
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Correct answer: A — ₹250
PIB (Finance): the minimum initial and annual contribution is ₹250, with no maximum limit.
Consider the following statements about NPS Vatsalya: 1. It is open to NRIs and OCIs below 18 years of age. 2. Partial withdrawal is allowed after three years, up to 25% of own contributions. 3. There is a maximum annual contribution limit of ₹1.5 lakh. Which of the statements given above is/are correct?
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Correct answer: B — 1 and 2 only
PIB (Finance): statements 1 and 2 are correct. Statement 3 is wrong: there is no maximum limit on contribution.
On which date was NPS Vatsalya launched by the Union Finance Minister?
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Correct answer: C — 18 September 2024
PIB (Finance): NPS Vatsalya was announced in the Union Budget 2024-25 and launched on 18 September 2024.