TV
Union Minister for Finance and Corporate Affairs Nirmala Sitharaman announced the launch of the NPS Vatsalya scheme in New Delhi on Wednesday. The scheme is aimed at providing financial security for minors.
Under the NPS Vatsalya scheme, parents or guardians can open an account for their children, allowing them to invest in the National Pension System (NPS). This initiative encourages early savings, helping to build a financial foundation for minors as they transition into adulthood.
The Finance Minister distributed over 250 Permanent Retirement Account Number (PRAN) cards to minor subscribers who traveled from various parts of the country and NPS Vatsalya was launched simultaneously at 75 locations across the country while an online platform was launched for subscribing to NPS Vatsalya.
The Union Finance Minister emphasized on the fact that the scheme is a step towards fulfilling PM Modi’s vision of Viksit Bharat and also that it will be a dignified source of funding for people in their old age. This initiative encourages early savings, helping to build a financial foundation for minors as they transition into adulthood. She also mentioned about Atal Pension commending its success with over 6.90 crore people subscription.
Union Minister of State for Finance Pankaj Chaudhary said, “NPS Vatsalya scheme is a significant step by the Government towards inclusive economic development and all the institutions involved in scheme implementation were urged to ensure maximum coverage and saturation of the scheme.”
Eligibility for NPS Vatsalya:
Citizen has to be a minor (age below 18 years).
Account can be opened in the name of minor and can be operated by parent or guardian where the minor will be the beneficiary.
Scheme can be opened through various points of presence regulated by PFRDA such as major banks, India Post, Pension Funds and Online platform (e-NPS).
The minimum contribution to be made by the subscriber should of Rs 1000 per annum. However, there is no limit on the maximum contribution.
Multiple investment choices are to be provided to subscribers by PFRDA. Subscribers can take exposure in government securities, corporate debt, and equity in different proportions based on risk appetite and desired returns.
On attaining the age of majority, the plan can be converted easily into a normal NPS account.
