NPS Vatsalya Scheme: PFRDA Eases Withdrawal, Exit Rules for Minors' Savings
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Moneycontrol•16-01-2026, 14:38
NPS Vatsalya Scheme: PFRDA Eases Withdrawal, Exit Rules for Minors' Savings
- •PFRDA has modified NPS Vatsalya Scheme's exit and withdrawal rules to enhance its appeal for minor subscribers.
- •Partial withdrawals are now allowed after three years of account opening, offering increased liquidity for education, medical treatment, and disabilities.
- •Subscribers can withdraw up to 25% of their contributions for specific needs, with revised frequency allowing two withdrawals before 18 and two between 18-21 years.
- •Exit options are more flexible: transition to NPS Tier I or exit with up to 80% lump sum (20% annuitized); full withdrawal if corpus is Rs 8 lakh or less.
- •NPS Vatsalya, launched on September 18, 2024, by Finance Minister Nirmala Sitharaman, helps parents build long-term savings for children.
Why It Matters: PFRDA has made NPS Vatsalya more flexible with easier partial withdrawals and exit options for minors.
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