NPS Vatsalya Scheme: Eligibility, Tax Benefits & Online Application Guide | HDFC Pension
 

NPS Vatsalya Scheme: Eligibility, Tax Benefits & How to Apply Online?

In light of the growing need to create a financially secure future for the next generation of Indians, NPS Vatsalya has been launched. This new scheme was introduced during Finance and Corporate Affairs Minister Nirmala Sitharaman’s 2024 Indian annual budget announcement. Subscribers can now invest in NPS Vatsalya online’ portals such as the HDFC Pension website.

What is NPS Vatsalya Scheme?

The NPS Vatsalya scheme is a contributory pension scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It is an opportunity for parents to save for their child’s future create a savings pool that benefits the future of the subscribers. While the National Pension System(NPS) is only eligible for adults over 18 years old, its extension, NPS Vatsalya, caters to minors. This is a powerful tool for investors looking to safeguard children’s future by regularly contributing to NPS Vatsalya. With NPS Vatsalya, subscribers can enjoy benefits like portability, freedom to make investment choices, and more. PFRDA-approved pension fund managers such as HDFC pension help subscribers fuel their child’s future with NPS Vatsalya.

Who is eligible for NPS Vatsalya?

NPS Vatsayla has been designed to offer a worry-free savings tool for empoweringyour child. Until the age of 18, parents and guardians invest on behalf of the child, giving them an early start on their savings. Once the individual becomes a young adult at 18, the NPS Vatslya becomes a regular NPS, wherein the subscriber must continue investing at their discretion.

The following eligibility criteria are in place for NPS Vatsalya

  • Indian citizens below 18 years of age
  • Parents or guardians of a child can open the account on behalf of the minors
  • Non-resident Indian (NRI) and Overseas Citizenship of India (OCI) individuals below 18 years

Benefits of the NPS Vatsalya Scheme

Opt for experienced pension fund managers like HDFC Pension to make the most of NPS Vatsalya. It extends a range of benefits, making it a lucrative investment option for the next generation. Benefits include

  • Early Savings Opportunity – Parents and guardians can safeguard the interests of their children under 18 by opting for NPS Vatsalya. An early start in investing with HDFC pension results in bigger savings due to the power of compounding.
  • Investing Discipline — Adults can inculcate the habit of investing when they lead by example. Subscribers benefit from parents investing on their behalf and learning the habit of savings as they take over the account at age 18. This imbibes in them the spirit of financial discipline.
  • Compounded Benefits — When parents invest early, children get years of advantage due to an early start that can profoundly impact the retirement corpus. The benefit of compounding will greatly impact the subscriber’s overall savings. HDFC pension guides parents through the process.
  • Savings for major events — Key milestones in a subscriber’s life, such as marriage and education, require strong financial backing. If subscribers withdraw within the early withdrawal plan limits, they can access funds for these major life events.
  • Safeguards Family Units — This early saving tool can have a profound impact on the finances of the family unit as a whole. It can positively impact good savings discipline and safeguard the family’s interests in the long run if it extends financial security.

How to Apply for the NPS Vatsalya Scheme?

  • Go to the HDFC Pension website that facilitates NPS Vatsalya
  • Under the ‘NPS Vatsalya (Minors)’ section, click ‘Apply Now.’
  • Fill out the online form with the required details.
  • You’ll receive an Acknowledgement ID,
  • Choose your KYC method:
    • CKYC
    • Aadhaar-based: KYC will be verified through UIDAI’s Aadhaar database.
    • Provide details such as bank information, scheme preferences, and nominee, and upload necessary documents like your photo, signature, PAN, and canceled cheque.
    • Upload Date of Birth proof of the child, also child bank details if Parents/guardian are NRI or OCI
    • Make a minimum initial contribution of ₹1000Upon successful payment, a 12-digit PRAN (Permanent Retirement Account Number) will be issued
    • Your PRAN will be sent via email and SMS.

Conclusion

When you opt for NPS Vatsalya facilitated by HDFC pension, it is an excellent investment opportunity for parents and guardians looking to start early investments for their children. This account transitions into a regular NPS account upon turning 18 years of age. It gives an early start, allows for a smooth transition, and builds long-term savings and a hefty retirement corpus for the HDFC NPS subscriber.

 

 

 

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