NPS Vatsalya: Want to register a complaint? Here’s how to access grievance redressal online — Stepwise guide

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.

NPS Vatsalya: Key highlights

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 be nominees under the scheme.

The scheme requires minimum annual contribution of ₹1,000 there is no cap on the maximum contribution.

Tax benefits are for combined ₹2 lakh for the parent or guardian, which includes ₹1.5 lakh under Section 80CCD(1B) of the Income Tax Act and ₹50,000 as additional deduction.

Documents accepted are birth certificate of the minor, school leaving certificate / matriculations issued by higher secondary board of respective states, passport of minor and PAN.

It is not mandatory for the minor to have a bank account or a joint bank account with the minor before opening the NPS Vatsalya account. But it will be required at the time of partial withdrawal or exit before the age of 18.

What are the investment choices under NPS Vatsalya?

There are three main choices on offer:

• Default Choice: This is a Moderate Lifecycle Fund — LC-50 (50% equity).

• Auto Choice: Aggressive Lifecycle Fund — LC-75 (75% equity), Moderate Lifecycle Fund – LC-50 (50% equity), or Conservative Lifecycle Fund – LC-25 (25% equity).
• Active Choice: Parents can actively decide the allocation of funds across equity (up to 75%), government securities (up to 100%), corporate debt (up to 100%), and alternate asset (up to 5%).

Here’s how to access grievance redressal online

According to the NPS portal’s frequently asked questions (FAQs) section, here’s what subscribers can do:

• Whom should I approach if I have a complaint/grievance?

For resolving subscriber grievances, the overseeing authority has notified the PFRDA (Redressal of Subscriber Grievance) Regulations, 2015.

Under this, an online platform, the Central Grievance Management System (CGMS), is available for subscribers to lodge grievances. You will be able to access this by logging into your NPS account.

• How quickly will my complaint be resolved?

As per the rules, complaints or grievances must be resolved by the concerned intermediary as early as possible. The maximum period for resolution is 30 days from the receipt of the complaint.

• What if I am not satisfied with the resolution provided?

If a subscriber is not satisfied with the resolution, they can escalate the grievance to the next higher level, and escalate the matter as follows:

Intermediary —> NPS Trust —> Ombudsman —> PFRDA —> Securities Appellate Tribunal (SAT)

For further inquiries, always refer to the official documentation from PFRDA and NPS Trust or Protean Blogs for the most accurate and up-to-date information.

Disclaimer: This story is for educational purposes only. We advise investors to check with certified experts before making any investment decisions.