New Delhi, Sept. 22 -- The National Pension Scheme's spin-off for children, NPS Vatsalya, allows parents or guardians to open and operate a pension account for minor(s) till they become an adult. Launched in September 2024, it gives interest rate between 9.5% to 10%.

Regulated and administered by the Pension Fund Regulatory Authority of India (PFRDA), NPS Vatsalya is exclusively for minors, and the child retains sole beneficiary status. As per the rules, the account is converted to a standard NPS account after they reach 18 years of age.

The beneficiary must be below 18 years; an Indian citizen, Non-Resident Indian (NRI) or Overseas Citizenship of India (OCI).

The parents or guardians operating the account on behalf of the minors will ...