New Delhi, August 12 — Over 1.3 lakh minors have been enrolled under the National Pension System (NPS) Vatsalya Scheme since its launch in September 2024, the Union government informed Parliament on Monday.
In a written reply to the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said that the enrollment figures were recorded till August 3, 2025.
Designed specifically for children, NPS-Vatsalya allows parents or guardians to contribute a minimum of ₹1,000 annually, with no upper limit, to build a retirement corpus for the minor. The account is converted into a regular NPS account once the subscriber attains majority.
Contributions made by parents or guardians qualify for an additional deduction of up to ₹50,000 under Section 80CCD (1B) of the Income Tax Act, applicable in the old tax regime.
The scheme is implemented through Points of Presence — bank and non-bank entities regulated by the Pension Fund Regulatory and Development Authority — and can also be opened online via the NPS Trust platform.
Launched on September 18, 2024, NPS-Vatsalya aims to “promote inter-generational equity and financial security” by encouraging early savings for children, Chaudhary said.
A June survey report by Grant Thornton Bharat revealed that while 43% of Indians aged 25 or below prefer to retire between 45 and 55 years, only 11% believe their current investments can meet their pension expectations. More than half (55%) expect a monthly pension exceeding ₹1 lakh, but only 11% feel confident that their present investments are sufficient to achieve this goal.
