How to Open an Account in Vatsalya Yojana:-The NPS Vatsalya Yojana is a new initiative by the Indian government, designed to help secure the future of children by encouraging early investment in their names. The scheme offers significant returns and the opportunity to transition into the National Pension Scheme (NPS) once the child reaches adulthood. This article will guide you through the process of opening an account, eligibility criteria, required documents, and the online application process.
Table of Contents
What is the How to Open an Account in Vatsalya Yojana?
The NPS Vatsalya Yojana was introduced in the Union Budget to promote long-term savings for children. It allows parents to open an investment account in the name of their child, which matures when the child turns 18 years old. Upon maturity, the account is converted into a regular NPS account, giving the child a stable financial start and encouraging financial responsibility from a young age.
Eligibility for NPS Vatsalya Yojana
To open an account in the NPS Vatsalya Yojana, the following eligibility criteria must be met:
- Child’s Age: The account can be opened for children below 18 years of age.
- Parents/Guardians: The account must be opened by parents or legal guardians of the child.
- Indian Residents: Only Indian citizens can participate in this scheme.
Required Documents for Opening an Account
To open an account under the Vatsalya Yojana, the following documents will be necessary:
- Child’s Birth Certificate: To verify the age and identity of the child.
- Parent/Guardian’s Identity Proof: Aadhar card, Voter ID, or Passport.
- Address Proof: Any document that provides proof of address such as utility bills, Aadhar card, or driving license.
- Photographs: Passport-sized photographs of both the child and the guardian.
- Bank Account Details: The guardian’s bank account details for debits and withdrawals.
How to Open an Account in NPS Vatsalya Yojana
There are two methods to open an account under the NPS Vatsalya Yojana:
Offline Method:
- Visit the Bank/Post Office: Parents or guardians can visit their nearest bank or post office authorized to open NPS accounts.
- Submit Documents: Fill out the required forms and submit the necessary documents as listed above.
- Initial Investment: A minimum deposit of INR 1000 is required to open the account.
Online Method:
- eNPS Portal: You can visit the National Pension System’s online portal (eNPS) and click on the option to open a new account under the NPS Vatsalya Yojana.
- Fill the Form: Fill out the application form with the child’s details, upload documents, and submit the form.
- Initial Deposit: Make the minimum investment through net banking, UPI, or other available payment methods.
Investment Details in NPS Vatsalya Yojana
The NPS Vatsalya Yojana is designed to generate significant long-term returns, thanks to the power of compound interest.
- Minimum Investment: The minimum deposit to open an account is INR 1,000.
- Returns: The scheme offers an average annual return of 14%. For instance, if you invest INR 10,000 monthly for a child who is three years old, by the time the child turns 18, the fund would have accumulated to nearly INR 60.57 lakhs (assuming a 14% return over 15 years).
Withdrawals from NPS Vatsalya Yojana
Withdrawals are allowed under specific circumstances:
- Lock-in Period: The scheme has a 3-year lock-in period during which no withdrawals are allowed.
- Permissible Withdrawals: After the lock-in period, up to 25% of the invested amount can be withdrawn for purposes such as higher education, medical emergencies, or in cases of disabilities.
- Number of Withdrawals: You are allowed a maximum of three partial withdrawals during the tenure of the account.
- Larger Investments: For investments exceeding INR 2.5 lakhs, you can withdraw up to 20% of the total amount.
How Much Return Can You Expect?
The NPS Vatsalya Yojana offers promising returns, making it an attractive option for long-term savings. With an annual return rate of 14%, even modest monthly investments can accumulate into significant sums over time.
For example:
- A monthly investment of INR 10,000 for a 3-year-old child can generate a corpus of over INR 60.57 lakhs after 15 years.
- This high return rate makes the scheme competitive and lucrative compared to other long-term savings plans available in India.
How to Apply Online for NPS Vatsalya Yojana
- Visit the Official Portal: Go to the official NPS website or eNPS portal.
- Create an Account: Register with the required details, including your child’s name, date of birth, and guardian details.
- Upload Documents: Scan and upload the necessary documents.
- Payment: Make the initial deposit through a secure payment gateway.
- Confirmation: After successful payment, you will receive a confirmation email or SMS.
Conclusion
The NPS Vatsalya Yojana is an excellent opportunity for parents to secure their children’s financial future. With significant returns, flexible withdrawal options, and the added benefit of transitioning to a full-fledged NPS account at adulthood, this scheme ensures both financial security and responsibility. Opening an account is simple, and with a minimum deposit requirement of just INR 1,000, it’s accessible to families across different economic backgrounds. Whether through a bank or online, the process is streamlined to make future savings easy for every Indian family.
FAQ.
1. What is NPS Vatsalya Yojana?
NPS Vatsalya Yojana is a savings scheme introduced by the Indian government for children. Parents or guardians can open an investment account in their child’s name, which matures when the child turns 18. Upon maturity, the account is converted into a National Pension Scheme (NPS) account.
2. Who is eligible to open an account under this scheme?
The account can be opened for any child below 18 years of age. The parent or legal guardian must open the account on the child’s behalf.
3. What are the required documents to open an account?
- Child’s birth certificate
- Parent/guardian’s identity proof (Aadhar, Voter ID, Passport)
- Address proof (Aadhar, utility bill, driving license)
- Bank account details of the guardian
- Passport-sized photographs of both child and guardian
4. What is the minimum investment required?
The minimum investment to open an account under the NPS Vatsalya Yojana is INR 1,000.
5. What is the return on investment in NPS Vatsalya Yojana?
The scheme offers an average annual return of 14%. Over a long period, this compounded interest can generate substantial savings.
