NPS Vatsalya lets parents start a pension account for a child, from birth. The NPS Vatsalya calculator shows the corpus at 18, the exit options at that point, and what the same money becomes by 60 if your child simply leaves it invested. It follows the NPS Vatsalya Scheme Guidelines issued on 7 January 2026 (effective 23 February 2026).
NPS Vatsalya returns table
From the child’s birth to 18, at 11% expected return:
| Contribution | Total invested | Corpus at 18 | If left till 60 (10%) |
|---|---|---|---|
| Rs. 10,000 a year | Rs. 1.8 lakh | Rs. 5.96 lakh | about Rs. 3.9 crore |
| Rs. 1,000 a month | Rs. 2.16 lakh | Rs. 6.80 lakh | about Rs. 4.46 crore |
| Rs. 2,000 a month | Rs. 4.32 lakh | Rs. 13.60 lakh | about Rs. 8.91 crore |
The long tail from 18 to 60 is the real power of Vatsalya: 42 more years of compounding without a single extra rupee.
NPS Vatsalya rules in 2026
- Opened and operated by a parent or legal guardian; the child is the only beneficiary.
- Partial withdrawal (max two times before 18) for education, specified illness or disability above 75%.
- At 18, fresh KYC; the child may continue in Vatsalya for up to three more years, move to regular NPS, or exit.
- If no choice is made by 21, the account moves to the high-risk variant under the Multiple Scheme Framework.
- Parents can claim up to Rs. 50,000 under 80CCD(1B), only in the old tax regime.
Read the complete NPS Vatsalya scheme guide, or compare with Sukanya Samriddhi and PPF for a child.
Frequently asked questions
What is the minimum amount for NPS Vatsalya?
Rs. 250 to open and Rs. 250 per financial year under the 2026 guidelines. There is no maximum.
Can grandparents contribute to NPS Vatsalya?
Yes. Relatives and friends can contribute as gifts, but the account is operated by the parent or guardian.
What happens to NPS Vatsalya at 18?
The child completes KYC and can continue in Vatsalya for up to three years, shift to regular NPS, or exit with up to 80% lumpsum (100% if corpus is below Rs. 8 lakh).
NPS Vatsalya or Sukanya Samriddhi: which is better?
SSY gives a guaranteed, tax-free 8.2% and is only for girls. Vatsalya is market-linked with higher growth potential and is for any child, but part of it may need to buy an annuity at exit.