On NPS Diwas, one scheme is getting special attention: NPS Vatsalya, which lets parents start pension savings for a minor child. How does it work?

Parents or guardians can open an NPS Vatsalya account for a child aged 0 to 18 with just Rs 250. The minimum annual contribution is Rs 250, with no upper limit — so families can invest according to their means.

The money is invested in market-linked options, with up to 75% allowed in equity. That matters because time is the biggest advantage: savings started at birth get nearly two decades of compounding before adulthood.

When the child turns 18, the account seamlessly converts into a regular NPS Tier-I account — the same pension account working adults use — giving the young adult a head start on retirement wealth.

Vatsalya is part of a wider NPS expansion that includes NPS Swasthya for healthcare coverage and Tatkal NPS for quick digital onboarding. The idea: financial security that starts in childhood and lasts a lifetime.