NPS Vatsalya Federal Bank

What is NPS Vatsalya Federal Bank?

NPS Vatsalya Federal Bank is a pension savings scheme under the National Pension System (NPS), regulated and administered by the Pension Fund Regulatory and Development Authority (PFRDA). It provides children with a financial head start by encouraging the habit of saving from an early age. The scheme is designed for all Indian minor citizens up to the age of 18, with a unique Permanent Retirement Account Number (PRAN) issued in the minor's name. A parent or legal guardian opens and operates the account, with the child as the sole beneficiary.

Features of NPS Vatsalya Federal Bank

The features of NPS Vatsalya Federal Bank are:

Investment

Secure

Secure your child’s future with or without you

Start Investing

₹10,000/Month

& Get

₹1 Crore^*

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NPS Vatsalya Federal Bank Eligibility

The NPS Vatsalya Federal Bank eligibility criteria are straightforward:

• Minor: The child must be an Indian citizen under the age of 18.
• Parents and Guardians: A parent or a legal guardian is required to open and operate the NPS account on behalf of the minor. The minor remains the sole beneficiary.

Documents Required to Open NPS Vatsalya Federal Bank Account

To open a new NPS Vatsalya Federal Bank account, the following documents are typically required:

• Guardian's Identity and Address Proof: Aadhaar, Passport, Driving License, or Voter ID etc.
• Minor's Date of Birth Proof: A Birth Certificate, School Leaving Certificate, or Passport of the minor is necessary.
• For NRI/OCI Guardians: Details of the minor's NRE or NRO bank account are mandatory.

How to Apply for NPS Vatsalya Federal Bank Account

The account can be opened through both online and offline channels.

1. Online Process:

   Step 1: Visit the official Federal Bank website and navigate to the NPS page.

   Step 2: Under the drop down ‘personal’, look for the drop down ‘products’. 

   Step 3: Under ‘Products’ click on the National Pension System. 

   Step 4: Under NPS Vatsalya, click ‘NPS Vatsalya’. 

   Step 5: On the NPS Vatsalya page, click ‘Open NPS Online’. 

   Step 6: Register Yourself, follow the instructions given on the screen’. 

   Step 7: After the complete process, your NPS Vatsalya account through Federal Bank will be opened and a unique PRAN will be issued to the minor.

2. Offline Process with Federal Bank:

   Step 1: Visit any Federal Bank branch that acts as a PoP Service Provider.

   Step 2: Obtain the NPS Vatsalya application form.

   Step 3: Submit the completed form along with your KYC documents and initial contribution.

   Step 4: The bank officials will assist you in the process. Upon verification, the PRAN will be issued.

Benefits of NPS Vatsalya Federal Bank

Choosing to open an NPS Vatsalya Federal Bank account offers several key advantages for parents:

• Long-Term Wealth Building: Through the power of compounding, the scheme builds a substantial corpus for your child's future, ensuring they have a strong financial foundation.
• Fostering Financial Literacy: The transition of the account at age 18 fosters a sense of financial responsibility and prepares children for future financial planning.
• Tax Efficiency: Parents can benefit from tax deductions on their contributions, making it a tax-efficient investment plan to secure their child's future.
• Secure and Regulated: As an NPS Account under the PFRDA, the scheme is a reliable and safe option for long-term savings.

Conclusion

The NPS Vatsalya Federal Bank scheme is a strategic investment plan for parents and legal guardians.It not only provides a financial safety net for children's future but also imparts life-long lessons in financial excellence. By starting early, parents can utilise this scheme to ensure their children have a bright and secure financial tomorrow.