PFRDA Unveils New NPS Vatsalya Guidelines for Minors: Investment & Withdrawal Rules Updated

• PFRDA issues NPS Vatsalya Scheme Guidelines 2025, updating the framework for minors' National Pension System accounts.
• NPS Vatsalya is now classified as a "Specific Purpose Scheme," with clearer rules for partial withdrawals after 3 years for education, illness, or disability.
• New guidelines define a transition process for subscribers after age 18, including options for account continuation, shifting to NPS All Citizen Model, or withdrawal.
• Investment framework specifies asset allocation: 50-75% equity, 15-20% government securities, and 10-30% debt instruments.
• Incentives up to ₹100 introduced for Anganwadi, ASHA, and Bank Sakhis to boost grassroots enrolment in rural and semi-urban areas.

Why It Matters: PFRDA's new NPS Vatsalya guidelines streamline minor's pension accounts with updated investment, withdrawal, and transition rules.