NPS Vatsalya Yojana: Finance Minister will launch NPS Vatsalya scheme today, now pension will be arranged for children too!

NPS Vatsalya Yojana is a good option for those who want to save for the future of their children and provide them financial security after retirement.

Under the NPS Vatsalya Scheme, parents or guardians can open accounts for their minor children and contribute to their retirement fund.

Finance Minister Nirmala Sitharaman will launch the 'NPS Vatsalya' scheme today i.e. on Wednesday. Along with this, she   will also launch an online platform for membership of NPS Vatsalya. The Finance Ministry gave this information in a statement on Monday. Keeping in mind the future of the children, Sitharaman had announced the launch of a new pension scheme 'Vatsalya' (NPS Vatsalya Plan) for children while presenting the full budget for the financial year 2024-25 in Parliament.

Programs will be organized simultaneously at around 75 places across the country

In line with the announcement made in the Union Budget 2024-25, today she will also distribute PRAN cards with Permanent Retirement Account Number to the children, besides releasing a bulletin on NPS Vatsalya Yojana. To mark the launch of NPS Vatsalya Yojana, programs will be organized simultaneously at about 75 locations across the country. Other locations will join through video conference.

What is NPS Vatsalya scheme?

NPS Vatsalya scheme is designed under the existing National Pension System (NPS). Under this, parents or guardians can open accounts for their minor children and contribute to their retirement fund. Parents can make a minimum investment of Rs 1,000 annually in the NPS account in the name of the child. This savings will be useful in the child's retirement planning.

At the same time, when the child becomes an adult, this scheme can be converted into a normal NPS account. That is, after the age of 18, the child can manage this account himself.

While presenting the Union Budget 2024-25, Finance Minister Nirmala Sitharaman had said that upon maturity of the child, the plan can be converted into a non-NPS plan without any hindrance.

If we understand in simple language, when the minor child turns 18 years old, the parents have the option to convert the account into a regular NPS account. 

Retirement fund will be ready for the future of children

This scheme is a good option for those who want to save for their children's future and provide them financial security after retirement. This new initiative has been designed with the intention of starting the process of securing the financial future of children early. This scheme will be run under the Pension Fund Regulatory and Development Authority (PFRDA).