Archive · 8 Jan 2026
PFRDA Updates NPS Vatsalya Scheme Guidelines 2025
The Pension Fund Regulatory and Development Authority (PFRDA) has updated the rules for the NPS Vatsalya Scheme, which is a pension plan for children.
The new guidelines, issued on January 7, 2025, replace the previous instructions from September 2024.
The scheme is now officially classified as a 'Specific Purpose Scheme.'
Key changes include rules for partial withdrawals, which can be made after three years from account opening for specific purposes like education, treatment of specified illnesses, or disability exceeding 75%.
Withdrawals are limited to 25% of the total contributions.
When the child turns 18, they can continue the account for up to three more years, switch to the NPS All Citizen Model, or withdraw part or all of the funds.
The guidelines also specify how the money is invested, with a higher portion in stocks compared to traditional savings products.
Additionally, there are incentives for community workers to enroll children in the scheme, with up to ₹100 per account.
The fees for the scheme will remain the same as the NPS All Citizen Model.
PFRDA issued updated guidelines for the NPS Vatsalya Scheme 2025, replacing instructions from September 2024.
NPS Vatsalya is now classified as a 'Specific Purpose Scheme' under Regulation 4A of the PFRDA (Exit and Withdrawals under NPS) Regulations, 2015.
Partial withdrawals are permitted after three years from account opening for specific purposes, capped at 25% of total contributions.
Subscribers can continue the account, switch to the NPS All Citizen Model, or withdraw funds upon turning 18.
The investment framework allows higher equity exposure (50–75%) compared to traditional savings products.
- Who
- Pension Fund Regulatory and Development Authority (PFRDA)
- What
- Issued updated guidelines for the NPS Vatsalya Scheme 2025
- When
- Guidelines notified on January 7, 2025; effective date to be notified
- Where
- India
- Why
- To update the regulatory and operational framework for the NPS scheme for minors
- Scheme Name
- NPS Vatsalya
- Purpose
- Pension scheme for minors
- Classification
- Specific Purpose Scheme
- Partial Withdrawal Eligibility
- After 3 years from account opening
- Partial Withdrawal Limit
- 25% of total contributions (excluding returns)
- Equity Allocation
- 50–75%
- Government Securities Allocation
- 15–20%
- Debt Instruments Allocation
- 10–30%
- Incentive for Enrolment
- Up to ₹100 per account for community workers
- Effective Date
- To be notified after system preparations
