NPS Vatsalya Scheme: PFRDA Eases Withdrawal, Exit Rules for Minors

• PFRDA has updated NPS Vatsalya Scheme rules, making partial withdrawal and exit options more attractive for minor subscribers.
• Partial withdrawals are now permitted after three years from account opening, a relaxation from previous norms.
• Subscribers can withdraw up to 25% of their contributions for education, medical treatment, and specified disabilities.
• Partial withdrawals are allowed twice before age 18 and twice between 18-21, revising the earlier three-time limit until age 18.
• Exit options now include shifting to NPS Tier I or withdrawing up to 80% as a lump sum (20% annuitized); full withdrawal for corpus up to Rs 8 lakh.

Why It Matters: PFRDA has enhanced the NPS Vatsalya Scheme, offering greater liquidity and flexibility for minors' long-term savings.