NPS Vatsalya Marks Two Years With 4.9 Lakh Enrolments and ₹403 Crore AUM

NPS Vatsalya has completed two years since its launch, with 4.9 lakh enrolments and Assets Under Management (AUM) of ₹403 crore, according to a CNBC TV18 news report citing the Pension Fund Regulatory and Development Authority (PFRDA). 

The pension-linked savings scheme for minors was launched on September 18, 2024, after being announced in the Union Budget 2024-25. A parent or legal guardian can open and operate the account, while the minor remains the subscriber and sole beneficiary. 

Minimum Contribution Set at ₹250 

The NPS Vatsalya Scheme Guidelines 2025 reduced the minimum contribution to ₹250 and removed the upper limit on contributions. The guidelines were issued on January 7 and took effect from February 23. 

The revised rules also raised the number of permitted partial withdrawals from two to four. Such withdrawals can be made after three years, subject to conditions and limits, including for education, treatment and disability-related purposes. 

Wider Investment Flexibility 

The revised framework allows pension funds to set asset allocations with equity exposure of up to 100%, subject to the applicable rules. Contributions are invested in market-linked instruments. 

NPS Vatsalya is available to Indian citizens, including NRI and OCI minors. Guardians can select pension funds registered with PFRDA. Relatives and friends can also make gift contributions to a child's account. 

Account Rules After 18 

Once the minor turns 18, the account can continue under NPS Vatsalya until the age of 21, be shifted to NPS Tier-I or be exited according to the applicable rules. 

If no option is exercised between 18 and 21, the account is automatically shifted to a higher-equity scheme under the Multiple Schemes Framework of the same pension fund. 

PFRDA Expands Outreach 

PFRDA has conducted school engagements, townhalls, and financial awareness programmes involving children, parents, teachers, and other stakeholders. The regulator said the focus in the third year will be on reaching more children and families. 

Read More: Punjab Govt Announces 8% DA Increase for Employees and Pensioners in 2 Instalments After Weeks-Long Standoff! 

Conclusion 

NPS Vatsalya has crossed ₹400 crore in AUM after two years, alongside 4.9 lakh enrolments. The revised framework has changed contribution, withdrawal, and investment provisions. 

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