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About NPS Vatsalya

Benefits of NPS Vatsalya

Eligibility and Enrolment

Contribution

Exit and Withdrawal

Tax benefits

Things to know

Important Documents

NPS Grievance Reporting Mechanism

1. Customer can call at – 1800 1200 1200.

2. Customer can log the Grievance using NPS Application of CRA

a. Customer can log in to the application

b. Customer to click on Support

c. Select grievance category from the menu

d. Select Grievance sub-category and provide grievance description

e. Upload attachment if any and click on submit to submit the grievance

3. Customer can submit the grievance form at the AU Small Finance Bank branch (Download the form)

4. Customer can write to us – customercare@aubank.in

5. Customer can also connect with our Nodal Officers Click here for details

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About NPS Vatsalya

The NPS Vatsalya scheme is a simple, worry-free savings tool that allows parents or guardians to invest on behalf of their children until they turn 18 years old. With NPS Vatsalya, you can secure your child’s future while enjoying the benefits of the National Pension System. Once the child reaches adulthood, the contributory account seamlessly converts into a regular NPS, empowering them to take charge of their financial journey. This unique scheme enables parents to leverage the power of compounding, ensuring abundant savings that their child can continue growing for a financially secure future.

Benefits of NPS Vatsalya

  • Power of compounding along with financial security
    Starting early allows money to grow significantly over time through compounding creating a financial cushion for the future.
  • Financial discipline
    Small, regular investments build a strong habit of saving and planning.
  • Empower your child
    Early exposure to saving builds responsible financial behaviour for life.
  • Tax Efficient
    Attractive tax benefits under the Income Tax Act, 1961.
  • Optimum Returns
    Provides market-linked returns based on pension funds’ performance.
  • Transparent
    24/7 online access to the account, with mandatory public disclosures ensuring transparency.

Eligibility and Enrolment

Eligibility

The scheme is available to all Indian citizens who are aged below 18(minors), including Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs). 
 

Enrolment

If you hold a Savings or Salary Account with AU Small Finance Bank, then you can easily apply for NPS Vatsalya online through AU0101 (Mobile Banking or Internet Banking) or visit your nearest AU Bank branch for assisted onboarding.

Contribution into NPS Vatsalya account

Manage your account and offers in one go

  • Minimum contribution for account opening: ₹250
  • Minimum Annual contribution: ₹250 
  • No limit on maximum contribution.

Exit and Withdrawal

A) Partial withdrawal

Purpose

Education of subscriber, treatment of specified illnesses, and disability more than 75%

Lock-in Period 

Minimum 3 years from the date of opening of account

Limit

Maximum up to 25% of contributions excluding returns.

Frequency

1. 0 - 18 years of age – Maximum Two withdrawals

2. 18 - 21 years of age – Two additional withdrawals


B) On attaining majority (age of 18 years)

Options between 18 -21

1. Continue to remain in the scheme for up to 3 years (till 21) OR

2. Shift the entire accumulated corpus to NPS (All citizen model or other applicable model) post KYC completion OR

3. Exit – 

a) if total accumulated corpus is < Rs 8 lakh → Full withdrawal

b) if total accumulated corpus is ≥ Rs 8 lakh → Withdraw up to 80% of corpus as lump sum and at least 20% as annuity

If no option is exercised till 21 years of age

The account auto-shifts to a higher-equity scheme under MSF. The account shall thereafter be governed by the PFRDA (Exits and Withdrawals under the NPS) Regulations, 2015. 


C) Death of Subscriber/Guardian

Exit due to death

1. Entire corpus is transferred to the guardian/nominee/legal heir. 

2. Option of transferring the proceeds to the NPS account of guardian/nominee/legal heir is also available.

If guardian predeceases subscriber

New guardian is required to be registered by submitting necessary KYC documents.

If both parents predecease subscriber

Legally appointed guardian may continue the account with or without contribution.

 

Tax benefits

Parents/ Guardian can enjoy Tax Benefits on investment of up to ₹ 50,000/- under section 80 CCD 1(B)

Discount on lockers

  • 50% lifetime discount on lockers

  • Free NRI PO Box facility (Click here to find your PO Box address and drop your service requests)

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Future account balance

₹10,000

100000 500000

Annual interest with AU Bank

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