NPS Vatsalya: Union Finance Minister Nirmala Sitharaman will launch the NPS-Vatsalya scheme on September 18. The scheme will be launched at 75 places across the country including Delhi. Other places will join through video conference. On this occasion, Permanent Retirement Account Number (PRAN) cards will also be issued to the minor members joining the scheme. Along with this, mandatory guidelines related to the scheme will also be issued. It is worth noting that Finance Minister Nirmala Sitharaman had announced the launch of this scheme while presenting the full budget for the financial year 2024-25 in July.
This new initiative is being launched to secure the financial future of children, which is an important step in the pension system of the country. This scheme of the government will be operated by the Pension Fund Regulatory and Development Authority (PFRDA).
Online registration is required
The Finance Minister will launch the online platform for NPS Vatsalya Yojana. Here the parents or legal guardians of the child will have to register. After completing this process, a permanent retirement account number will be issued.
People from all economic backgrounds will be able to avail the benefits
In this scheme, parents can make a minimum investment of Rs 1,000 annually in the name of the child. This will make this scheme accessible to families from all economic backgrounds. The power of compound interest over a long investment period can significantly increase returns.
What is NPS Vatsalya
This scheme is specially designed for the youth. Under this, parents or guardians can open an account for their minor children and make long-term savings for their retirement. After attaining adulthood, this scheme can be converted into a regular NPS account.
Who will be eligible
All parents and legal guardians, whether Indian citizens, NRIs or OCIs, are eligible to open an NPS-Vatsalya account for their minor children. They will be the ones to operate it until the child attains majority.
