PFRDA Issues NPS Vatsalya Scheme Guidelines 2025 for Minors’ Retirement Savings

The Pension Fund Regulatory and Development Authority (PFRDA) issues the NPS Vatsalya Scheme Guidelines 2025. The guidelines relate to a contributory savings and long term financial security scheme designed exclusively for minors. The update is relevant now due to the issuance of the 2025 guidelines.

NPS Vatsalya Scheme (Guidelines 2025) :

Dimension	Key Details
Authority	Governed by the Pension Fund Regulatory and Development Authority (PFRDA).
Nature of scheme	Contributory savings and long term financial security scheme designed exclusively for minors.
Eligibility	Applies to all Indian citizens, including NRI/OCI, below 18 years of age.
Account operation	Account opened in the name of the minor and operated by the guardian.
Contribution limits	Mandates minimum initial and annual contribution of ₹250; provides for no maximum limit on contribution.
Gifting of contribution	Gifted by relatives and friends.
Pension fund selection	Authorises the guardian to choose any one Pension Fund registered with PFRDA.
Partial withdrawal timing	Partial withdrawal after completion of three years from account opening.
Partial withdrawal limit and permitted uses	Regulates partial withdrawal up to 25% of own contributions (excluding returns) for education, medical treatment and specified disabilities.
Partial withdrawal frequency	Twice before 18 years and twice between 18–21 years, subject to conditions.