NPS Vatsalya Scheme: Major Changes Allow 80% Lump Sum Withdrawal, Simplified Rules

• PFRDA has revised exit and withdrawal options for the NPS Vatsalya scheme, designed for minors.
• Partial withdrawals are now permitted after 3 years of account opening, up to 25% of own contributions for specific needs.
• Withdrawals can be made twice before age 18 and twice between 18-21, with a maximum of 3 partial withdrawals until 18 previously.
• Upon exit, members can transfer to NPS Tier-1 or withdraw up to 80% as a lump sum, with 20% for annuity purchase.
• If the total accumulated amount is Rs 8 lakh or less, the entire amount can be withdrawn, simplifying previous annuity requirements.

Why It Matters: NPS Vatsalya scheme rules are simplified, allowing higher lump sum withdrawals and making it more attractive.